Category: Legal Ethical Issues in Management

FACTS
FOR THIS DISCUSSION – DO NOT ADD OR ASSUME UNSTATED FACTS. 
ASSUME
THE NEXT DOOR NEIGHBOR WAS SITTING IN HIS YARD AND TOOK A VIDEO OF THE WHOLE
THING, SO THE FACTS OF THIS HYPOTHETICAL AS RELATED CAN BE PROVED IN COURT.
Victor
Tremont has a classic muscle car that he fixed up and has enjoyed drag
racing.  He has kept it well maintained.  Much as he loves the car,
Victor finds himself in need of cash. He parks the car on his front yard, with
a large sign on the windshield that says, “Cherry of a classic car, For
Sale $4,900 or Best Offer. AS-IS.”
Gloria
Goget drives by and sees the car. She is immediately enamored and stops to look
at it. She is sure the car is worth more than the asking price. When she knocks
on the front door, there is no response; she looks around, and decides nobody
is home, so she takes her business card and on the back writes, ” I will
pay you $5,500 cash for your classic car.”  She signs her name, and
dates it, including the time, and slips the card onto the windshield of the car
under the wiper blade.
About
a half hour later,  Victor returns. He does not see Gloria’s card because
he does not walk around and look at the car.  A few minutes after he is
home, his buddy, Levi Lord, pulls in to look at the car. Levi has always liked
the car and has gone racing with Victor. Levi offers Victor $5,000 even for the
car, and Victor accepts. The two men shake hands on the deal. Victor goes in
the house to get the car title while Levi writes out a check to Victor for
$5,000.
Victor
comes out with the title in his hand. As Levi starts to hand him the check,
Gloria pulls in. She has an envelope of $5,500 cash for the car. Victor says to
Gloria,”sorry, but I have just sold the car to Levi here.” 
Gloria objects and says she already offered $5,500 earlier.  
When
Victor says, “No, you didn’t,” she marches him to the car and shows
him her card.
“There
is my offer, I already left you before.  You weren’t home and now I have
the money right here,” she said.
Victor
turns to Levi, “Sorry, she did leave this offer, I’m going to sell it to
her for more money.”
Levi
objects, stating, “You just said you already sold it to ME. We shook hands
on it. You cannot back out now just because some card was floating around no
one knew about. She wasn’t even here! She’s a loser too late!”
While
the three of them stand in the yard arguing, Jack Bucksworthy drives in the
yard. He gets out of his Cadillac, looks at the muscle car, and moseys over to
the three arguing people.  He asks, “who owns that hot rod for
sale?”
“I
do,” says Victor.
“No,
I do,” says Levi.
“It’s
MY Car,” snaps Gloria.
“I’ll
pay whichever of you, $8,000 for that car,” says Jack,  “but
only if the engine starts.” 
Victor
answers, “Of course it starts. I accept your offer.”
Levi
hollers, “NO! That car is no longer for sale! I bought it! It’s mine! I’m
not selling it!” (Waving the check in Victor’s face.)
Gloria
stomps over to the muscle car, grabs the sign off it, and sits on the
hood.  “It’s my car. I was here before all of you and I have real
money in hand.” she yells, waving her envelope over her head. 
Victor
says to Jack,” Pay no attention to them. I have the title — right here.
My car. Let’s start the car.”
DISCUSSION
PROMPT:
YOU
BE THE JUDGE. DECIDE WHO GETS THE CAR. 
USING
THE ABOVE FACTS, DISCUSS AND ANSWER THE FOLLOWING:
identify the contract issues you see here.
Applying common law principles of contract, who
gets the car, if anyone, and for how much? Explain your reasoning using
the definitions and principles of contract provided in Lessons, required
readings and any other research you do.
In terms of making an offer, what is the legal
significance of Jack Bucksworthy’s statement, “only if the engine
starts?”