SALES FINAL EXAM
PROFESSOR JANICE KOSEL
DECEMBER 12, 2003
FALL 2003

INSTRUCTIONS

1. You have two (2) hours for this exam. You may allocate your time as you wish.

2. This is an open book exam, consisting of one essay worth 100% of your grade. You may consult any written material you wish including, but not limited to, your class notes, outline, text, and UCC. You may not consult with anyone else.

3. Write your exam number on your exam envelope. Put your correct class section and student exam # at the top of this page, each page of questions, and each blue book. Do not use your name, student ID number or Social Security Number on any exam materials.

4. If you believe you lack sufficient facts to answer the question, please specify what additional information you require and how it will affect your answer.

5. Read, think and analyze before you begin to write. Please write clearly. Write on every other page to permit instructor comments.

6. At the conclusion of the exam, return all exam materials to the exam envelope and submit it to the proctor. Do not seal the envelope. Students who do not return all exam materials at the end of the exam may not be graded.

Good luck and have a great holiday!

Sofie was a graduate student at the local university. Tuition was steep and times were tough. Sofie was unable to find a job so she decided to be entrepreneurial. She began to buy lots of antiques at a local auction house and resell them on ELake.

The first hundred or so purchases and sales over a two-month period were successful and Sofie netted a profit of over $2,000. Then she began to experience problems.

1. Sofie advertised a rather plain silver dish at a fixed price—$25. Then, as she was thumbing through antique books, she saw a picture, description and valuation of the dish—$2,500. Sofie raced to her computer to withdraw the dish from the sales site before the announced termination date. But she was unsuccessful—the computer wouldn’t let her do it. So, Sofie purchased her own silver dish for $25 and breathed a sigh of relief. But a potential purchaser, Benny, came forward that same day and insisted he has the right to purchase the dish as advertised for $25. ELake doesn’t want to get involved but does note that its rules prevent sellers from withdrawing posted items. Advise Sofie.

2. Sofie attended an auction in Oakland. She made the winning bid of $500 for an assortment of items. She was primarily interested in one of them—a bone china teacup. When she went over to examine her purchase after the gavel fell, Sofie was distressed to note a small hairline crack in the cup. She has refused to pay for her purchase. The auction house has threatened to sue Sofie and bar her from all further auctions. Advise Sofie.

3. Sofie decided that her sideline business was too much of a hassle. Now that she is out of the business, she has no use for the 1,000 packing boxes she ordered to send the goods to her customers. Fortunately, the shipment was delivered one day later than promised and two of the boxes were soggy, presumably from the heavy rains the day of delivery. Sofie shipped the boxes right back to her supplier and has demanded a refund. The supplier refuses. Advise Sofie.

END OF EXAM