Make an argument in favor of tom bearing the risk of loss

Assignment Help Business Economics

Reference no: EM131253077

Consider the following: Tom owns an automotive parts store for specialty vehicles in New York, New York. Pete, who lives in Newark, Delaware, owns a specialty vehicle and is in the market to buy a muffler. Pete calls Tom and tells Tom that he has 1969 Cadillac Eldorado and is looking for a silver muffler for this vehicle. Tom recommends a $600 muffler and even offers to install it for an additional $50. Pete declines Tom’s offer to install but is interested in the muffler. Tom and Pete write up a contract for the sale of the muffler to be delivered by May 1, 2015 to Pete’s address in Newark, Delaware.

Required: make an argument in favor of Tom bearing the risk of loss.

Reference no: EM131253077

Questions Cloud

Determine the nash equilibrium : There are d democrats and r republicans voting in the US Presidential election. Each person decides whether to vote or not vote. The voters get a payoff of 2,1,0 if their preferred candidate wins, ties, or loses (respectively). Voters that vote incur..

Should the firm make the investment : A firm is considering an investment that will earn a 6% rate of return. If it were to borrow the money, it would have to pay 8% interest on the loan, but it currently has the cash, so it will not need to borrow. Should the firm make the investment? ..

Consider the business cycle and its four phases : Can the bad actually be good? Consider the business cycle and its four phases. Often times we anguish over the recessionary part of the cycle – there is increasing unemployment, bankruptcies, incomes and profits are dropping, production declining, et..

How firm can use economic calculation but bureaucracy cannot : Describe how Hayek believed markets would coordinate actions. Explain how firm can use economic calculation but a bureaucracy cannot? Explain why. Also explain why resources will be allocated to their highest value use even though each company is onl..

Make an argument in favor of tom bearing the risk of loss : Consider the following: Tom owns an automotive parts store for specialty vehicles in New York, New York. Pete, who lives in Newark, Delaware, owns a specialty vehicle and is in the market to buy a muffler. Pete calls Tom and tells Tom that he has 196..

A firm is considering an investment : A firm is considering an investment that will earn a 6% rate of return. If it were to borrow the money, it would have to pay 8% interest on the loan, but it currently has the cash, so it will not need to borrow. Should the firm make the investment? ..

Why can distinction between fixed costs and variable costs : Why can the distinction between fixed costs and variable costs be made in the short run? Classify the following as fixed or variable costs: Interest on company bonds-Shipping charges, Payment for raw materials, Real estate taxes, Executive salaries

Fixed and variable costs involved with the production : Describe 3 key inputs(or factors of production) and fixed and variable costs involved with the production of Walmart apparel. Analyze these factors that impact your choice of inputs to produce Walmart apparel.

How is the market for gas-guzzlers affected : S&D applications: Describe the correct shift in the S&D graph for each market identified (in bold letters) below: If auto-workers receive a 20%-pay hike, how will the market for new cars be affected? If the teenage population increases, how will the ..

User Account

All Pages