Contract Law Case Summary

Satisfactory Essays
vehicle he needs to add that to the contract as well. Creditors can only repossess your goods if they have clearly stated that in the contract and can be done based on the laws of the state (Vehicle Repossession, 2008). Any action can then only be done once the contract is signed by both parties. The pro of using the 5% incentive is that most customers will see this as a savings and people that usually make late payments will maybe change their habits and sent it in on time due to the savings. The con to this would be that people who make late payments may still continue to do this and Davis will still lose out on money. Davis overall wants to have customer satisfaction, but also makes his dealership profitable. Happy customers can become loyal customers and will spread the work and bring new customers.…show more content…
Action-oriented bias is when people feels pressure to take action, dismiss the possibility of negative events, and are optimistic about the future (Rykrsmith, 2013). Davis has been very concerned about customers not paying and feels that even if he puts this plan into action customers will still continue to not pay. He needs to set a plan for the risks and with his uncle’s idea I think he will achieve his goals. He needs to consider all the possible outcomes to each situation such as best-case, worst-case, most-likely-case and least-likely case (Rykrsmith, 2013). Self-interest bias has conflicting incentives and incentives that reward the wrong behavior and silo thinking which does not consider the big picture (Rykrsmith, 2013). If Davis was to look at only giving a 5% discount with no other action then he would be allowing the people that do not pay on time to get a discount and continue to not pay on time. Davis needs to consider all his options and determine what is best for
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