Question 15.
Three months passed. While returning from a friend’s house, Vineeta’s new SUV was hit by another car. Fortunately, she was not injured, but the SUV was badly damaged. Surprisingly, when Vineeta took the car for repairs to Balaji Motors, she was told that the repairs would not cost her anything as the extended warranty on her car covered such accidents. Vineeta could not recall purchasing such a warranty; hence, she contacted Shyam. Shyam informed her that the extended warranty was mistakenly punched into her contract by an executive. As this mistake could not be reversed due to the company’s rigid policies, Shyam bore the cost of Rs. 19,000. He further added that Vineeta should consider it a gift from Balaji Motors for purchasing the highest-priced Diplomatico SUV.
As Vineeta rode back home, she wondered if she should pay Rs. 19,000 to Shyam since the extended warranty came to her aid that day.
Which of the following is the MOST compelling rationale for Vineeta to justify not paying Rs. 19,000 to Shyam?
As Vineeta rode back home, she wondered if she should pay Rs. 19,000 to Shyam since the extended warranty came to her aid that day.
Which of the following is the MOST compelling rationale for Vineeta to justify not paying Rs. 19,000 to Shyam?
A
She paid more for the Diplomatico SUV, compared to the price of a similar SUV from Panther.
B
She is aware that for expensive SUVs like hers, dealers often offer free extended warranty.
C
The mistake happened three months back and is water under the bridge now.
D
Had the accident not happened, she would not have been aware of the warranty.
Question Explanation
Text Explanation
Option B is the best rationale for Vineeta. Here’s why:
Market Expectation: Vineeta might feel that for the price she paid for a high-end SUV, a free extended warranty is a reasonable expectation within the car dealership industry. This mistake simply fulfills that expectation she might have had.
Bargaining Leverage: By mentioning this common practice, Vineeta can initiate a negotiation with Shyam. She can argue that since the mistake resulted in a benefit she might have expected anyway, it can be considered a wash. Option A- Price Comparison: Even if a similar SUV from Panther might have been cheaper without an extended warranty, it doesn't negate the fact that the warranty is now covering Vineeta's repairs.
Option C- Time Passed: The time gap doesn't change the fact that the mistake benefited Vineeta.
Option D is entirely focused on the past (she wasn't aware). It doesn't address the current situation or a potential solution.
Option E- Shyam's Need: This puts the responsibility on Shyam to ask for the money back, rather than Vineeta taking the initiative to return it, especially since the mistake benefitted her.Video Explanation
Option B is the best rationale for Vineeta. Here’s why:
Market Expectation: Vineeta might feel that for the price she paid for a high-end SUV, a free extended warranty is a reasonable expectation within the car dealership industry. This mistake simply fulfills that expectation she might have had.
Bargaining Leverage: By mentioning this common practice, Vineeta can initiate a negotiation with Shyam. She can argue that since the mistake resulted in a benefit she might have expected anyway, it can be considered a wash. Option A- Price Comparison: Even if a similar SUV from Panther might have been cheaper without an extended warranty, it doesn't negate the fact that the warranty is now covering Vineeta's repairs.
Option C- Time Passed: The time gap doesn't change the fact that the mistake benefited Vineeta.
Option D is entirely focused on the past (she wasn't aware). It doesn't address the current situation or a potential solution.
Option E- Shyam's Need: This puts the responsibility on Shyam to ask for the money back, rather than Vineeta taking the initiative to return it, especially since the mistake benefitted her.
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