Hartnell-2013-Spring-Sales-FinalExam

Hartnell-2013-Spring-Sales-FinalExam - QUESTION...

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Professor Hartnell: Sales, Final, Spring 2013 2 of 6 QUESTION # 1 (RECOMMENDED TIME: 6O MINUTES) In April 2013, Mary Mowbell inherited a small, antique Art Deco mahogany “game table” from her grandmother. Mary loves to play chess, and the table is the perfect size for two players. Mary took the table to her home, found the perfect place for it, then realized that she did not have any matching chairs. After visiting a few furniture stores and finding nothing suitable, Mary decided to have a pair of chairs custom built to use with the table. Mary contacted Fred Holz, a furniture builder in her town, and asked him to design and build the chairs for her. Mary told Fred that the chairs must be made of mahogany wood and must be in the Art Deco style, so that they will “go with” the table. Fred made a quick sketch for the chairs, and Mary said, “Yes, that style works perfectly, but of course the wood and the finish – color and so on – must also match the table.” Fred prepared a written receipt for Mary. Fred hand-wrote the details of the transaction on a receipt form that he had downloaded from the Internet and printed onto his letterhead stationery. The receipt states: “Seller will build a set of mahogany Art Deco reproduction chairs for Buyer at a cost of $900 each, for a total of $1,800, to be delivered on or before May 15, 2013.” Fred requested a 30 % deposit, so Mary gave him a check for $600. Fred noted on the receipt: “Cash deposit: $600. Balance owed: $1,200.” The following text is printed at the bottom of the receipt form: “This contains all terms of the agreement. Seller makes no warranties.” Just before Mary left Fred’s studio, they made an appointment for him to come over to Mary’s house to see her game table. Two days later, Fred visited Mary at home, where he inspected and measured the table. Mary repeated how important it was to her that the chairs match the table. Fred reassured her by saying “Don’t worry. It is no problem to match the color and finish, and I will use the same kind of rare mahogany wood.” The next day, Fred started to search for wood to build the chairs. He located a source of similar mahogany and purchased enough for two chairs. However, Fred was surprised to learn that the wood was more expensive than he had expected. (Fred estimated that the wood would cost around $500 per chair, but instead it cost nearly $1,000.) Fred completed the design for the chairs, cut the wood, and got to work. Fred completed the first chair quickly, and delivered it to Mary’s home on Saturday, April 20 th . Mary was out of town, but her daughter Meg was at home to receive the delivery. Fred placed the new chair next to the game table, and left. Mary returned home on the evening of Wednesday, April 24 th , stressed and tired from her business trip. When Mary saw the new chair, she flew into a rage, and fired off an e-mail to Fred that same evening. Mary’s e-mail read:
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Professor Hartnell: Sales, Final, Spring 2013 3 of 6 “What were you thinking? The color and finish on the chair are all wrong, they do not match the table at all.
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  • Fall '
  • Gebbia
  • Chair, Chairs, Couch, Mary Mowbell

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