1. a. Why did the Court of Appeals rule for Johnson, the car dealer? b. Why did...
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b. Why did the Supreme Court reverse the Court of Appeals’ judgment that the vehicle’s air conditioner was not covered by a warranty?
c. What test did the Kansas Supreme Court employ to determine whether the implied warranty of merchantability had been breached?
d. How would the Kansas Supreme Court determine when a used car would be protected by the implied warranty of merchantability?
2. In buying a new motor home, Leavitt told the dealer that he wanted to have plenty of power and braking capacity for driving in the mountains. He was assured by the dealer on both counts. He brought the motor home and found it unsatisfactory for mountain use. After many warranty repairs, he sued for breach of warranty.
a. What warranty was breached, according to Leavitt?
b. Decide the case. Explain.
3. Priebe bought a used car without a warranty (sold as is). The seller, Autobarn, told Priebe that the car had not been in any accidents. After driving the car more than 30,000 miles, Priebe crashed the car. Priebe sued Autobarn claiming the car was dangerous to drive because of a previous, undisclosed accident. Priebe did not show that Autobarn had knowledge of the previous accident; nor did Priebe show that the value of the car was reduced by the previous accident. Priebe sued for breach of warranty. Decide. Explain.
4. Douglas Kolarik alleged that he used several imported, pimento-stuffed green olives in a salad. In eating the salad, he bit down on an olive pit and fractured a tooth. The olive jar label included the words “minced pimento stuffed.” The defendants are importers and wholesalers of Spanish olives that reach the defendants in barrels and are then inspected for general appearance, pH and acid level and then washed and placed in glass jars suitable for distribution for the purpose of retail sales.
a. What legal claim would be expected from the plaintiff based on the “minced pimento stuffed” language?
b. Decide that claim. Explain.
Jim Johnson owns a car dealership in Saline County that sells high- end, used vehicles. In January 2005, Johnson sold Dr. Merle Hodges and Melissa Hodges a 1995 Mercedes S320 with 135,945 miles for $17,020 (the sales price of $15,900 plus tax). Johnson had been driving the Mercedes as his personal vehicle for roughly 2 years before the sale. Johnson testified before the district court in this case that he told the Hodgeses when they purchased the Mercedes that it was a nice car in good condition. Dr. Hodges testified that Johnson said the car “was just pretty much a perfect car” and that Johnson “loved driving it.”
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A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the... Distribution
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