What Was the Result in the Lefkowitz V

question 99

Multiple Choice

What was the result in the Lefkowitz v.Great Minneapolis Surplus Store Inc.case (referenced in the textbook) involving an advertisement for the sale of fur coats?

• A)The court ruled that the advertisement was not an offer because it involved a luxury good.
• B)The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it.
• C)The court ruled that the advertisement was not an offer because it was a ridiculously low offer that the plaintiff should have known was not to be taken seriously.
• D)The court ruled that the advertisement was not an offer because advertisements are never offers; instead,they are merely invitations for customers to make an offer.
• E)The court ruled that the advertisement was an offer and that the plaintiff properly accepted it.

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Definitions:

Accounting Equation

A fundamental financial principle represented as Assets = Liabilities + Owners' Equity, showing the relationship between a company's resources and its sources of financing.

Transactions

Financial activities or events that affect the financial position of a business, such as buying, selling, or transferring assets.

Sole Stockholder

An individual or entity that owns 100% of the outstanding shares of a corporation.

Income Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.