John purchased for cash a Revenge automobile manufactured by Japanese Motors, Ltd., from an authorized franchised dealer

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John purchased for cash a Revenge automobile manufactured by Japanese Motors, Ltd., from an authorized franchised dealer in the United States. The dealer told John that the car had a ‘‘24-month, 24,000-mile warranty.’’ Two days after John accepted delivery of the car, he received an eighty-page fine print manual that stated, among other things, on page 72:
The warranties herein are expressly in lieu of any other express or implied warranty, including any implied warranty of merchantability or fitness, and of any other obligation on the part of the company or the selling dealer.
Japanese
Motors, Ltd., and the selling dealer warrant to the owner each part of this vehicle to be free under use and service from defects in material and workmanship for a period of twenty-four months from the date of original retail delivery of first use, or until it has been driven for 24,000 miles, whichever first occurs. Within nine months after the purchase, John was forced to return the car for repairs to the dealer on thirty different occasions, and the car has been in the dealer’s custody for more than seventy days during these nine months. The dealer has been forced to make major repairs to the engine, transmission, and steering assembly.
The car is now in the custody of the dealer for further major repairs, and John has demanded that it keep the car and refund his entire purchase price. The dealer has refused on the ground that it has not breached its contract and is willing to continue repairing the car during the remainder of the ‘‘24–24’’ period. What are the rights and liabilities of the dealer and John?

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

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