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1 January, 10:08

Gary is in the market for a used car and finds one in the classified ads. The seller tells him that there are no issues with the car and it has never been wrecked. He calls the seller and they negotiate a deal. Both buyer and seller shake hands, sign the papers, and Gary drives off with the car.

What would make Gary's transaction non-beneficial?

A. If the car was dirty

B. If the car had actually been in a wreck

C. If the car was worth more than he paid

D. If the police pulled him over for speeding

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  1. 1 January, 12:39
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    B. If the car had actually been in a wreck

    Explanation:

    The first effect if the car had been a wreck would be to greatly reduce the value of the car. So, if Gary thought he paid a good value for a non-wrecked car, he would then have overpaid for a wrecked car.

    The second effect would be that the seller would have lied ... which could lead to legal consequences.

    A. If the car was dirty. Unless it's an extreme case, the cleanliness of a car doesn't affect its value

    C. If the car was worth more than he paid. Then it would be beneficial for Gary.

    D. If the police pulled him over for speeding. The fact that Gary was caught speeding has no relation with the transaction.
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