Final answer:
The subject of this question is Law. Ruth made an oral agreement to sell her used racing bike to Mike for $400 but received another offer before the sale was finalized. Understanding the concept of oral agreements and the importance of offer and acceptance in contract law is crucial.
Step-by-step explanation:
In this scenario, the subject of the question is Law. Ruth made an oral agreement to sell her used racing bike to Mike for $400. However, before the sale was finalized, she received another offer. It is important to understand that an oral agreement can be legally binding, but it may be difficult to enforce without written documentation. Additionally, the concept of offer and acceptance is essential in contract law.