An Elderly Relative Offers to Sell You Her Used 1958

question 42

Multiple Choice

An elderly relative offers to sell you her used 1958 Cadillac Eldorado for $50,000.You note that very similar cars are selling on the open market for $90,000.You don't care for classic cars and would rather buy a new Ford Explorer for $35,000.What is the net value of buying the Cadillac?

• A)$90,000,since the Cadillac could be sold for this price.
• B)$50,000,since the Cadillac could be bought for this price.
• C)$40,000,since this is the difference between purchase and resale price of the Cadillac.
• D)$35,000,since this is the value of the car that you really want to buy.
• E)-$15,000,since this would cost that much more than the car that you really want to buy.

---

Definitions:

Criminal Penalties

Punishments imposed by the court system for committing acts that violate criminal law, including fines, imprisonment, or probation.

Civil Penalties

Civil penalties are fines or other forms of punishment imposed by a governmental agency for violations of regulatory laws or ordinances, not involving criminal prosecution.

Government Regulation

The act of controlling, directing, or managing activities, industries, or entities by a governing body.

Business Law

A branch of law that deals with the rights, relations, and conduct of individuals and businesses engaged in commerce, merchandising, trade, and sales.