Brenda Howard needed a new car, so she went online to look for cars and dealerships. Since
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Online, Brenda saw that Prize Autos had a Voyager listed at a "no-haggle price of $23,000." After she clicked "accept" on the Terms & Conditions, the website allowed for her to place it on hold by putting down a credit card for a charge of $3,000, creditable towards the purchase. Since she clicked "accept" without reading the Terms & Conditions, she did not know that the Terms & Conditions included a $750 Restocking Fee for returned vehicles. She put it on hold on Friday morning at 5:00 am; at lunchtime, she transferred the balance due from her savings account to Prize Autos. She picked up the car at 7:00 pm from salesperson Guillermo Reyes.
After driving the Voyager for the weekend, she decided she should settle for a cheaper car, so on the following Monday night at 8:00 pm, she went to the dealership. However, the dealership had already closed, so she left the keys in the Overnight Drop Off box for the Service Department and sent an email to Guillermo that she had returned the car. In the email, she demanded a refund of the $23,000. Prize Autos retained a $750 restocking fee and refunded the rest by doing an electronic deposit on Tuesday.
Brenda posted a review on the Prize Autos site that said, "These people are unethical. Do NOT do business with them. After promising me I could test-drive the car for a week, they kept $750 of my money. Stay away from Guillermo Reyes!" Prior to the review, Guillermo earned about $8,000 per month in commissions. After the review, his average commissions dropped in half.
Read the case and answer the questions below:
1. Is Brenda entitled to a refund of the $750? Be sure to explain your answer.
2. If Guillermo sued Brenda for defamation, what would be the result? Be sure to explain your answer.
Related Book For
Management A Practical Introduction
ISBN: 978-0078112713
5th edition
Authors: Angelo Kinicki, Brian Williams
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