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    Arthur is a an 12 year old with an IQ of 150. On his birthday, Arthur received a gift of $500 in cash from his Aunt, who told him to buy what he wanted. Since Arthur was interested in stamps, he ordered the "100 Special Stamps a Month" offer for 12 months from the Excelsior Stamp and Coin Company. Arthur was mistaken about the price of the "100 Special Stamps a Month" offer. It was actually $50 a month. Arthur thought it was $5 dollars a month, and sent Excelsior $60, which he thought was full payment. After Arthur sent the $60, he lost all interest in the stamps and ignored all further requests for payment Excelsior.

    Excelsior, outraged over Arthur's delinquent account, has sued Arthur's parents for $540, representing the balance due. Who wins and why?

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    https://brainmass.com/business/business-law/240086

    Solution Preview

    Dear student:

    I enjoyed assisting with your post. This subject can be tricky but laws are in place to protect all involved. When Arthur ordered the items, and due to his high IQ, he was aware that he was contracting for purchase. Even though Arthur is extremely smart and wanted to make a purchase, he is extremely young and might not have understood the ...

    Solution Summary

    The solution discusses Arthur is a an 12 year old with an IQ of 150. On his birthday, Arthur received a gift of $500 in cash from his Aunt, who told him to buy what he wanted. Since Arthur was interested in stamps, he ordered the "100 Special Stamps a Month" offer for 12 months from the Excelsior Stamp and Coin Company. Arthur was mistaken about the price of the "100 Special Stamps a Month" offer. It was actually $50 a month. Arthur thought it was $5 dollars a month, and sent Excelsior $60, which he thought was full payment. After Arthur sent the $60, he lost all interest in the stamps and ignored all further requests for payment Excelsior.

    Excelsior, outraged over Arthur's delinquent account, has sued Arthur's parents for $540, representing the balance due. Who wins and why?

    $2.19

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