Question

Allie, a travel agent, purchases an ad in the local newspaper to attempt to sell special vacation packages to Bora Bora. The ad reads “Two Tix to Bora Bora. All inclusive. $4999 OBO. Call us at 1-800-TRAVEL1 before next Tuesday.” Max calls Allie on Monday and proposes that he buy a total of four tickets for $9,000. Which of the following is true concerning this transaction?
a.
Allie has made a firm offer.
b.
Max will be obligated to buy four tickets for $9,000 if Allie says, "I accept."
c.
Max has made a counter-offer.
d.
Allie is obligated to sell Max four tickets for $9,000.

Answer 1

The statement that is true here is:

c.

Max has made a counter-offer.

Explanation:

Max here is giving another offer on the above of the offer that is given by Allie the travel agent.

He is trying to bargain himself into a better position in the deal and then to seal it as he can see an obvious profit in the game.

Thus, this counter deal that is offered puts both parties in a situation of advantage and either of the two can make things final or obstruct the deal spending on if they would want this deal to take place on the given terms or would want better terms.