The Big Book Store Just Received a Shipment of 100

question 10

Multiple Choice

The Big Book Store just received a shipment of 100 copies of Contemporary Business Law: Principles and Cases at wholesale price.The store contacted the local university to see if it was interested in purchasing the book.The bookstore faxed an offer of $5,000.00 for the 100 books.Due to a poor quality fax transmission the last three zeros were not visible.Upon receiving the offer it appeared that the 100 books were on sale for $500.The university accepted the offer,received the books and deposited $500.00 in the store's bank account.Upon receiving its bank statement,the store realized the error and decided to take action against the university.Will it succeed?

• A)Yes,the inadequacy of the consideration would render the transaction unenforceable because the court could not adequately determine the store's consideration due to error.
• B)No,the store has lost on the deal because offer and acceptance both took place.
• C)Neither side would be held to the contract because it would be ruled invalid.It will be renegotiated and the store will pay a penalty for breach of contract.
• D)No,the store cannot take action,but none of the above statements are true.
• E)Yes,the store can take action,but none of the above statements are true.

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Definitions:

Income Increase

A rise in the amount of money earned by a person, group, or country, which can affect purchasing power and consumption patterns.

Substitute Good

A product or service that a consumer sees as the same or similar to another product.

Price

The cost associated with obtaining a good or service.

Market Quantity

The total amount of a product or service that is available for purchase at any given time in a market.