Yeah, I'd pass on this one and see if something else comes up in your price range. As hockeyteeth mentioned, the components of this bike are all extremely cheap, the saddle, handlebars, crank/chainring, pedals, and brakes are all probably worth $50 altogether and the frame itself is probably only worth about $50.

LOTS of people take up cycling, don't stick with it, and sell their bikes off a year later for a fraction of their actual worth all the time with all the original components. This bike looks like someone salvaged the frame and put it together with left over walmart parts just to make a quick sell. Just keep looking every week for new waves of bikes on craigslist and something good will pop up in your price range.