Obligation And Performance, And Given That Allison Want To Keep The Car, What Can She Do?

1. Under the theories of obligation and performance, and given that Allison wants to keep the car, what can she do?
The applicable law is governed by the UCC under express warranty. “An express warranty is a statement of fact or promise of performance relating to the goods that becomes a basis of the buy’s bargain” (Twomey and Jennings, 2014, p. 518). Since Alice wants to keep the car, Bill has an obligation of good faith under the UCC concerning the performance of the contract. Under these circumstances Bill has committed a breach of an expressed warranty because the “basis for the bargain” was that the car was free of defect. She can also return the car to Bill and revoke the acceptance of the car since it does not conform to the contract and the defects substantially reduce the value of the car.
2. What standard must she prove? Alice has to prove that the car did not conform to the contract and that devaluation of the car was substantial. It did not conform to the contract
Alice spent $200 incidental to the breach of warranty on a rental car therefore, Bill is liable for those expenses. If Bill refuses to fix the transmission Alice can sue for breach of contract, incidental damages and damages for non-delivery, market value. “If the seller fails to deliver the goods as required by contract or repudiates the contract, they buyer is entitled to collect damages for breach of contract” (Twomey and Jennings, 2014, p. 562). Under revised Article 2 and previous Article 2 methods of determining value, in this case, market price and measured damages would be the same. Alice could receive a total of $2,200 (Difference in value from current condition $9,000 and warranted value, $11,000 plus the $200 for incidental damages, cost of the rental