The client, Mrs. Tatum, purchased a new microwave oven from Inki Appliances Company. No written or oral warranty was given when the sale was made. The microwave stopped working one week after Mrs. Tatum took it home. She returned the microwave three days after it quit working. The owner of Inki Appliances refused to repair or replace the microwave or give Mrs. Tatum her money back. Prepare a demand letter to be sent to Inki Appliances. The letter is to be signed by your supervising attorney, Alice Black. Use the letterhead presented in the Application section of this chapter. Mr. Terry Spear is the president and owner of Inki Appliances Company, and the address is 1001 Maple Drive, Friendly, NW 00065.
Statutory Law: Section 50-102-314 of the New Washington statutes provides that "a warranty that the goods shall be merchantable is implied... if the seller is a merchant with respect to the goods of that kind." Mr. Spear is a merchant. Mrs. Tatum did not misuse the microwave or in any other way cause it to quit working.
Case Law: The case on point is Smith v. Appliance City, 56 N. Wash. 162, 868 N.E. 997 (1995). In Smith, the New
Washington supreme court ruled that the seller has three options when an implied warranty is breached: return the purchase price to the buyer, repair the merchandise, or replace the merchandise.