It veered over an embankment, causing serious injuries to Wanda. What is Sloan’s liability to Butler and Wanda?

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It veered over an embankment, causing serious injuries to Wanda. What is Sloan’s liability to Butler and Wanda?

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While Butler and his wife, Wanda, were browsing through Sloan’s used car lot, Butler told Sloan that he was looking for a safe but cheap family car. Sloan said, “That old Cadillac hearse ain’t hurt at all, and I’ll sell it to you for $6,950.” Butler said, “I’ll have to take your word for it because I don’t know a thing about cars.” Butler asked Sloan whether he would guarantee the car, and Sloan replied, “I don’t guarantee used cars.” Then Sloan added, “But I have checked that Caddy over, and it will run another 10,000 miles without needing any repairs.” Butler replied, “It has to because I won’t have an extra dime for any repairs.” Butler made a down payment of $900 and signed a printed form contract furnished by Sloan, which contained a provision, “Seller does not warrant the condition or performance of any used automobile.” As Butler drove the car out of Sloan’s lot, the left rear wheel fell off, and Butler lost control of the vehicle. It veered over an embankment, causing serious injuries to Wanda. What is Sloan’s liability to Butler and Wanda?

Explanation & AnswerSolution by a verified expert

Explanation

The definition of express warranty does not mandate it to be in writing. The statement made by Person S about the car's condition may or may not be considered an express warranty.
Unless it is specifically mentioned to exclude, Person S is considered to be a merchant and is liable for the implied warranty of merchantability. The case mentioning the car being a used product does not affect the merchantability of Individual S.
Because privity of contract does not constitute a valid excuse, Person B can claim damage from Person S based on the implied warranty of merchantability being breached.

Verified Answer

Person B may recover from Person S, based on a violation of the implied warranty of merchantability and strict tort liability and a possible breach of express warranty.

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