Managerial economics "undue influence"
Need help
Scenario:
Mr. John is running a shop of new watches. He is also studying B.cs. as a private student under the supervision of a teacher. One day his teacher comes on to his shop and selects an expensive beautiful watch. But he insists to buy watch at a very less price than the market price of that watch. Mr. John, however, will never sell that watch at the stated price to any customer but due to the respect of his teacher, allows him to buy at a price stated by his teacher. His teacher buys the watch and leaves the shop.
Required:
Whether “Undue Influence” has been exercised in this case or not? Discuss on the basis of three conditions that should appear in a scenario to deem presence of “Undue Influence” in it.
The teacher has every right to negotiate the price for his favor, like any other customer.
There seems to be an unprofessional shopkeeper, who does not know how to handle such a scenario. He could have reasoned to conclude the deal at the cost price, at least.
Teacher is clever and selfish whereas student is idiot.
Nomanomar: give the watch for free . It will be better for Mr John. The teacher will appreciate it and bring joys
However, a legal definition is Undue Influence Definition:
The unconscientious use by one person of his/her power over another in order to induce the other to compromise a property right. - The question will be if the teacher used his power conscientious or not.
Finally: There have been more legal dissertations on what is and is not undue influence than there seem to be fish in the sea, rendering it difficult to sort out.
Exercise of undue influence is characterized often by excessive insistence, superiority of physical power, mind, or will, or pressure applied due to authority, position, or relationship in relation to the strength of the person submitting to it.
What the teacher executed is excessive insistence, and pressure applied due to authority. It does look like undue influence, but I agree with brit, Mr. John is an idiot.
So you want us to do your homework for you ?
Simply put , there was no undue influence - Mr John is an idiot for bowing to his teacher's whims and allowing himself to sell the item at a lower price ..