Reference no: EM132205176
SALES UNDER THE UNIFORM COMMERCIAL CODE
CASE 1. Hall Motors, Inc. sold a 2007 used Volvo Station wagon to Judith Constance for $4,500. Constance has corresponded with Hall Motors on several occasions and has alleged that Nichols, an experienced salesman for Hall Motors, made several oral warranties in connection with her purchase of the car. Constance alleges that there has been a breach of warranty and as a result she has suffered damages to the extent of $2,515 for expenses of repairing the car,$525 in rental car charges, and $129 in hotel and meal expenses while waiting for the car to be repaired. Constance indicated that in the event she does not receive these amounts, she will take appropriate legal action to obtain satisfaction.
In various, letters, Constance stated she went to Hall Motors and contacted Nichols. Before she finally made a deal for the car, she asked many questions about the car. Nichols assured her that the car was in good condition and that he had driven the car several times. In addition, Nichols stated that “This is a car I can recommend and it is in A-1 shape.”
Constance informed Nichols that her husband had been transferred to another state, that her child was only two years old, and that she needed the car so she could join her husband 500 miles away. She stated that Nichols assured her that he knew the car and the person who traded it in and it was “ mechanically perfect.” He also told her that “it would get her any place she wanted to go and not to worry.” Constance indicated she knew nothing about cars but would like to drive it. Nichols replied that this was not possible because he was the only man on duty at the lot and he could not accompany her as required by company policy.
Constance stated she purchased the car in reliance on the statements made by Nichols. Unfortunately, these statements proved to be incorrect. The car began knocking and finally broke down after about 300 miles on her trip to the new state. The car had to be repaired and after waiting several days Constance rented another car to get her to her destination. She had incurred the expenses previously requested and had all documentation of her expenses.
Nichols indicated that he believed what he had stated was true, as far as he knew the car was not in bad condition, and he knew of no important defects in the car. He also indicated that it was company policy to not warrant the car because it was over two years old and had in excess of $75,000 miles.
In a legal action, who will prevail? Discuss all warranties, if any, that Constance should plead in her case.