Whether “haggling” at a garage sale or for the best deal on a vehicle, most of us understand the give-and-take that often determines a fair price.

A seller asks a price that is more than he needs to cover costs and a potential buyer responds by offering less than she is actually willing to pay.  If the two parties settle on a price, common sense tells us that price is reasonable – i.e., it meets the seller’s need to cover costs and fits the buyer’s ability and willingness to pay.

A 4-3 majority of the Colorado Supreme Court doesn’t seem to understand that the advertised price and the actual cost are often vastly different.  In Volunteers of America vs. Gardenswartz, the court considered whether someone injured by another’s negligence is entitled to recover the amount originally billed for his medical expenses or the only the amount actually paid to the hospital and doctor. (more…)