Letty is 17 years old. She just got her driver's license and is excited to buy her first car. She sees an ad on Craig's List for a 2010 Shelby GT500 for sale that peeks her interest. It is her favorite color, pink, in excellent condition with only 5,000 miles, and a convertible just like she wants. She calls the seller, Dominic, and tells him she wants to buy it. Dominic tells Letty the car is $30,000 and gives her his address so she can pick up the car and bring him the money. The next day Letty brings Dominic a check and drives the car home. Dominic was so excited about selling the car that before Letty arrived he decided to celebrate and drank 6 tequila shots and 3 beers. Dominic is quite a character, he loves to party and drinks almost every day. He's also somewhat of a daredevil and many of his friends describe him as fun but a little crazy. On his Facebook page he brags about how crazy he is. Three months later, Letty turns 18. She and her friends celebrate her birthday by going to a dance club. Prior to going out, Letty drank some cough syrup with codeine that her doctor had prescribed for her. On the way home from the club, Letty is involved in a car accident. Luckily no one is injured, but her car sustains $20,000 worth of damage. Letty calls Dominic and tells him that she doesn't want the car anymore and that he needs to return her money. Dominic says fine, and tells her to bring the car back. The next day Letty has the car towed back to Dominic's. Dominic sees the wrecked car and exclaims, "what happened?" Letty tells him about the accident and says "where's my money?" Dominic then tells her, "I might be crazy, but I'm not stupid! I'm not giving you a penny back, you destroyed it, it's yours, it's not my problem!" Did Letty and Dominic have a contract for sale of the car? Was there an offer, acceptance and consideration? Did Letty and Dominic have the capacity to enter into the contract? Can Letty sue Dominic and get her $30,000 back? What if the accident was her fault, can she still get her money back? What is the infancy doctrine and does it apply to this case? Did Letty disaffirm or ratify the contract? What defenses can Dominic raise for not returning her money?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Letty is 17 years old. She just got her driver's license and is excited to buy her first car. She sees an ad on Craig's List for a 2010 Shelby GT500 for sale that peeks her interest. It is her favorite color, pink, in excellent condition with only 5,000 miles, and a convertible just like she wants. She calls the seller, Dominic, and tells him she wants to buy it. Dominic tells Letty the car is $30,000 and gives her his address so she can pick up the car and bring him the money. The next day Letty brings Dominic a check and drives the car home. Dominic was so excited about selling the car that before Letty arrived he decided to celebrate and drank 6 tequila shots and 3 beers. Dominic is quite a character, he loves to party and drinks almost every day. He's also somewhat of a daredevil and many of his friends describe him as fun but a little crazy. On his Facebook page he brags about how crazy he is. Three months later, Letty turns 18. She and her friends celebrate her birthday by going to a dance club. Prior to going out, Letty drank some cough syrup with codeine that her doctor had prescribed for her. On the way home from the club, Letty is involved in a car accident. Luckily no one is injured, but her car sustains $20,000 worth of damage. Letty calls Dominic and tells him that she doesn't want the car anymore and that he needs to return her money. Dominic says fine, and tells her to bring the car back. The next day Letty has the car towed back to Dominic's. Dominic sees the wrecked car and exclaims, "what happened?" Letty tells him about the accident and says "where's my money?" Dominic then tells her, "I might be crazy, but I'm not stupid! I'm not giving you a penny back, you destroyed it, it's yours, it's not my problem!"

Did Letty and Dominic have a contract for sale of the car? Was there an offer, acceptance and consideration? Did Letty and Dominic have the capacity to enter into the contract? Can Letty sue Dominic and get her $30,000 back? What if the accident was her fault, can she still get her money back? What is the infancy doctrine and does it apply to this case? Did Letty disaffirm or ratify the contract? What defenses can Dominic raise for not returning her money?

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