Jim and Laura Buyer visit the local car dealership because they are interested in buying a new car. The car they current

[answerhappygod]

Jim and Laura Buyer visit the local car dealership because they
are interested in buying a new car. The car they currently have is
aging and is starting to have mechanical problems. Jim and Laura
would share the new car, and use it to go back and forth to work
and school. Before going to the dealership, Jim and Laura decide
that they can only afford $400.00 a month in car payments.

Once at the car dealership, Jim and Laura meet Stan Salesman. Stan
shows them several vehicles and Jim and Laura test-drive several of
the cars. Jim and Laura particularly like the blue 4-door sedan.
Therefore, they agree to give Stan Salesman a $100.00 deposit to
hold the car for a day. Stan Salesman does not give them the
receipt but guarantees that the $100.00 is refundable. No documents
were signed.

The next day, Stan Salesman calls Jim and Laura to ask them when
they would like to take delivery of the car. Jim and Laura, on the
way home from the dealership, decided that they were not going to
buy the car because they did not want to spend that money each
month. Therefore, Jim and Laura tell Stan Salesman that they have
decided not to buy the car and request their $100.00 deposit
back.

Stan insists that the $100.00 was a deposit on the car and was
meant to be part of the contract to buy the car. Stan is very
persistent and insistent that Jim and Laura have contracted to buy
the car; therefore, the $100.00 will be applied to the purchase
price of the car. Jim and Laura are shocked and angry as not only
do they not want to spend the money, but now feel as though they
are being duped by Stan Salesman.

Jim and Laura have an appointment to see a lawyer in a few days,
but know you are a student taking a business law class and come to
you for advice. They are very frazzled, and understandably upset
that they may have just purchased a car. Since you have been taking
business law, you have read and understand the elements of a
contract and the defenses to a contract. Therefore, although you
are not a lawyer, you provide some basic advice from what you’ve
learned in your business law class.

ASSIGNMENT: In three to five (3-5) pages,
advise Jim and Laura based on the above facts as presented and the
material covered in the lessons. In your paper, be sure to address
the following: