Larsen denied having received that oral notification. On October 12, Peckham sent a written notice of revocation of acceptance to Larsen. What are the rights of the parties?
On March 17, Peckham bought a new car from Larsen Chevrolet for $16,400. During the first one and one-half months after the purchase, Peckham discovered that the car’s hood was dented, its gas tank contained no baffles, its emergency brake was inoperable, the car did not have a jack or a spare tire, and neither the clock nor the speedometer worked. Larsen claimed that Peckham knew of the defects at the time of the purchase. Peckham, on the other hand, claimed that he did not know the extent of the defects and that despite his repeated efforts, the defects were not repaired until June 11. Then, on July 15, the car’s dashboard caught fire, leaving the car’s interior damaged and the car itself inoperable. Peckham then returned to Larsen Chevrolet and told Larsen that he had to repair the car at his own expense or that he, Peckham, would either rescind the contract or demand a new automobile. Peckham also claimed that at the end of their conversation, he notified Larsen Chevrolet that he was electing to rescind the contract and demanded the return of the purchase price. Larsen denied having received that oral notification. On October 12, Peckham sent a written notice of revocation of acceptance to Larsen. What are the rights of the parties?
Under the revocation of acceptance rule, the buyer has the right to revoke the car's acceptance since Buyer P satisfies all the required criteria, such as:
Various defects were associated with the car such as gas tank and hood-related issues.
Buyer P accepted the car on the basis of certain specific assumption such as repairing of the discovered defects.
The non-conformity of the car decreased the car's value.
The buyer revoked of the car's acceptance within a specified time because the car was not as per the specified agreement.
These criteria establish that the buyer is able to revoke the acceptability of the car.
The rights of the seller are effective only if the buyer's intention to cure exists, without fulfilling all the required criteria within a specified time,to revoke the car's acceptability.In this case, Seller M is not going to succeed since the required criteria is fulfilled by Buyer P.
This case reflects the possibility to revoke the car's acceptability. The buyer has the right to revoke the acceptability of the car by fulfilling the required criteria within a reasonable time. The criteria are:
Non-conformity of the car.
Acceptance of the car on the basis of some specific assumption, in the context of its non-conformity.
The value of the car is affected by its non-conformity.
Revocation of the car's acceptance within a reasonable time.
Seller M has right to take an appropriate action against the buyer in the context of the revocation of acceptance,if the buyer is unable to fulfill all the required criteria of the revocation of acceptance within a reasonable time.