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Betsy contacted Sam, a salesman who works for Luxe, a company that sells luxury boats, and told him that she was interested in purchasing a luxury boat. Luxe provided Betsy with free airfare and lodging at a hotel resort near the Luxe boat showroom. After shopping at the showroom, Betsy became interested in the Wind Catcher model priced at $200,000. Sam explained to Betsy the features of the Wind Catcher and told her that it was “state of the art.” Sam gave Betsy a one-page purchase order form on which the words “Wind Catcher” were written in the blank space marked “Boat Model,” and “$200,000” was written in the blank space marked “Price.” Just above the signature line in red italics were the words “This offer by Purchaser is irrevocable for thirty (30) days. All sales are final when approved by Luxe.” Before Betsy left the hotel the next day, Sam came by to tell her that he had just learned that Luxe was about to raise its prices, but that she could order the Wind Catcher at the current price if she quickly returned the purchase order form she had received the night before. When Betsy returned home, she checked prices on the Internet for comparable boats and decided the price quoted by Luxe for the Wind Catcher was a good deal. She signed and faxed the purchase order form to Luxe. After receiving the purchase order form from Betsy, Sam prepared the documents that Betsy would need to register the boat and went to the boat harbor where Betsy planned to keep the boat to make sure that the docking facilities were adequate for the Wind Catcher. A few days later, Betsy learned that, despite what Sam had said, Luxe had no plans to raise its prices and that the Wind Catcher was an older model without the navigation and safety features available on newer models. She immediately faxed a letter to Luxe stating that she did not want to make the purchase. That same afternoon Betsy received in the mail from Luxe a photocopy of the purchase order form that was stamped “Accepted” and signed by Luxe. Under what theory or theories may Luxe be successful in a breach of contract action against Betsy? Discuss. Do not discuss U.C.C.

Operation Management, Management Studies

  • Category:- Operation Management
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