If the Car Is Really Worth Only $500,what Is the Effect

question 62

Multiple Choice

If the car is really worth only $500,what is the effect of this lower vehicle value on the contract between Jennifer and Timmy?

• A)The contract is voided because an illusory promise was made by Jennifer based on the illusion that the car was worth more.
• B)Promissory estoppel results in the contract being voided because Timmy's promise was based on inaccurate information.
• C)There is no effect,because the court does not determine if a good or bad deal was made.
• D)The court may award Timmy damages because Jennifer entered into a contract under false pretenses and cost him money.
• E)The effect of the lower vehicle value will depend upon whether the court determines if Timmy entered into a bad or good deal.

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Definitions:

Market Segments

Subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities like needs, characteristics, or behaviors.

Excessive Costs

Costs that exceed the expected or budgeted amount, often leading to financial strain for a business.

Segmentation Variables

Criteria used to divide a market into smaller segments, based on characteristics such as demographics, psychographics, geography, or behavior.

Market-product Grid

A matrix used to analyze and display the relationship between different markets and products, identifying opportunities.