Professor Shott buys a Porsche against the wishes of his much more intelligent wife. Professor Shott soon realizes his mistake when he starts to make the car payments. Jane, a very wealthy 17 year old, offers to buy the Porsche and Professor Shott accepts.Now assume that before she turns 18 Jane gets in an accident and badly damages the Porsche causing $20,000 in damage. Assume she originally paid Professor Shott $50,000 for the car. If Jane now seeks to return the damaged car what is the result? Professor Shott must refund Jane his money minus the amount of the damages.Professor Shott does not have to refund Jane anything.Professor Shott can demand it be repaired before giving Jane a refund.Professor Shott must refund Jane 100% of his money even though he damaged the car.

In the given scenario, it is clearly mentioned that Jane expressed interest in buying the car from…

Answered: Professor Shott buys a Porsche against…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Professor Shott buys a Porsche against the wishes of his much more intelligent wife. Professor Shott soon realizes his mistake when he starts to make the car payments. Jane, a very wealthy 17 year old, offers to buy the Porsche and Professor Shott accepts.

Now assume that before she turns 18 Jane gets in an accident and badly damages the Porsche causing $20,000 in damage. Assume she originally paid Professor Shott $50,000 for the car. If Jane now seeks to return the damaged car what is the result?

Professor Shott must refund Jane his money minus the amount of the damages.
Professor Shott does not have to refund Jane anything.
Professor Shott can demand it be repaired before giving Jane a refund.
Professor Shott must refund Jane 100% of his money even though he damaged the car.

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