In January 1992, Joseph Perna bought an eleven-year—old Oldsmobile at a New York City police auction sale for $1,800 plus towing fees. It had been impounded by the police for nonpayment of parking tickets. The bill of sale from the police to Perna contained this language: “subject to the terms and conditions of any and all chattel mortgages, rental agreements, liens, conditional bills of sale, and encumbrances that may be on the motor vehicle of the [its original owner]." About a year later Perna sold the car to a coworker, Elio Marino, for $1,200. Marino repaired and improved the car by replacing the radiator, a gasket, and door locks. Ten months after his father bought the car, Marino’s son was stopped by police and arrested for driving a stolen vehicle; Mario paid $600 to a lawyer to get that matter resolved, and he never got the car back from the police. ls Perna liable to Marine for the value of the car? ls Perna liable for the consequential damages—the attorney’s fees?

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According to Uniform Commercial Code section 2312 in every contract of sale that a buyer and seller ... View the full answer