Francis & Mayo, Inc.: Richard Mayo

7 Pages Posted: 21 Oct 2008

See all articles by Sherwood C. Frey

Sherwood C. Frey

University of Virginia - Darden School of Business

Jacob Ulvila

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper

Abstract

This case provides confidential information from the perspective of the buyer of an exotic automobile. The companion case is "Francis & Mayo, Inc.: Alex Smith" (UVA-QA-0375). The pair of cases provides an opportunity for students to experience face-to-face negotiations in a distributive bargaining context.

Excerpt

UVA-QA-0374

Rev. Nov. 9, 2010

Francis & Mayo, Inc.: Richard Mayo

You are Richard Mayo, partner with James Francis in a small business whose principal endeavor is the buying and selling of exotic cars. Your firm is based in Roanoke, Virginia, but its activities span the United States and occasionally even extend abroad. During the early years of the partnership, the business focused on used Chevrolet Corvettes. Over the past few years, however, the emphasis has shifted to upscale imports—Rolls Royces and other exotic automobiles such as Maseratis, Ferraris, and Lamborghinis. You usually deal in older, collectible cars, but sometimes in order to close a deal you have to accept in trade a car outside your targeted market. Such deviations are generally quickly disposed of through one of the many automobile brokers.

Winter is usually a slow period in the exotic car business and the 1987 to 1988 season was especially weak. The supply of exotic cars available for purchase was slim, even though the prices offered increased rapidly. As a result of that short supply, your inventory of good, solid exotics dropped well below what you would like it to be for January when heading into the prime spring and summer sales seasons.

In an effort to increase your stocks, you have stepped up your contact with a number of people around the country and abroad who are paid a finder's fee for locating cars that you end up buying. Because you were about to make a trip to the Southwest to pursue several attractive leads in Phoenix, Arizona, and San Diego, California, you made a last-minute call to your agent in Dallas, Texas, in hopes of stopping there on your way out west. Your representative said that a few cars had recently come on the market and described some she had already inspected. She also mentioned an advertisement for a 1972 Lamborghini Espada that she had just seen in the newspaper, but noted that she had not yet had an opportunity to examine that car. You indicated that the other leads sounded good and that you would like to stop in Dallas tomorrow. While checking your spec book to refresh your memory about the specifics on the 1972 Lamborghini Espada (Exhibit 1), you asked your agent for the phone number of the person offering the car and said you would try to call to get further details.

. . .

Keywords: negotiation

Suggested Citation

Frey, Sherwood C. and Ulvila, Jacob, Francis & Mayo, Inc.: Richard Mayo. Darden Case No. UVA-QA-0374. Available at SSRN: https://ssrn.com/abstract=911854

Sherwood C. Frey (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/frey.htm

Jacob Ulvila

affiliation not provided to SSRN

No Address Available

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