Celeb café wanted to change some of its furniture. The manager, Macy, contracted Trend Furniture to...

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Operations Management

Celeb café wanted to change some of its furniture. The manager,Macy, contracted Trend Furniture to enquire about the prices oftables and chairs. Trend Furniture faxed Macy a quotation for a sumof RM30,000 based on Macy’s selection of models. Upon receiving thefax, Macy called Trend Furniture and bargained the price toRM28,000. Trend Furniture replied that it would think about thematter and get back to Macy the next day. The same afternoon, Celebcafé’s assistant manager, Neiman, obtained a better quotation fromAikia Furniture. The same models of furniture would only costRM25,000. Macy planned to purchase the furniture from AikiaFurniture instead.

a) Explain who the ‘offeror’ and ‘offeree’ are in the situationabove.

b) Could Macy purchase the furniture from Aikia Furniture?Justify your answer.

Answer & Explanation Solved by verified expert
3.6 Ratings (407 Votes)
A In the above situation when trend furniture sent Celeb Caf the quotation of 30000 RM then trend furniture is the offerer and Celeb cafe is the offeree When Macy negotiated for the price to RM 28000    See Answer
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