Case Study on Vehicle Sale Warranty
lawDarrow purchases a new car from Silver Motors. The retail installment contract states immediately above the buyer’s signature in large, bold type: “There are no warranties that extend beyond the description on the face hereof” and “There are no express warranties that accompany this sale unless expressly written in this contract.” Before purchasing the car, Darrow specifically informed Silver’s salesperson that he wanted a car that could be driven in a dusty area without needing mechanical repairs. Silver’s salesperson said to Darrow, “Nothing will go wrong with this car, but if it does, return it to us, and we will repair it without cost to you.” Neither this statement nor any similar statement appears in the retail sales contract. Darrow drives the car into a dust storm. The air filter gets plugged up, and the car engine overheats, causing motor damage. Silver Motors refuses to repair the engine under any warranty. Darrow claims that Silver is liable for breach of the implied warranty of fitness for a particular purpose, that the Magnuson-Moss Warranty Act prohibits disclaiming this implied warranty, and that the salesperson’s express warranty has also been breached. What are the merits of Darrow’s claims?
Response: pg 425
Following the review of the question above as well as the related materials provided via lectures and the text, we believe that Darrow will not be rewarded any damages through his claims against Silver Motors for the refusal of service on the repair of Darrow’s automobile. As stated in the slides: “if a seller breaches a warranty, buyer can recover damages, or rescind the contract.” In this specific case the implied warranty to Darrow regarding the dusty conditions was made verbally which directly disregarded that promise upon the signature by Darrow purchasing the vehicle. This is due to the fact that the installment contract stated: “There are no warranties that extend beyond the description on the face hereof” and “There are