Question:
On May 23, Deborah McCullough, a secretary, purchased a Chrysler LeBaron from Bill Swad Chrysler-Plymouth. The automobile was covered by both a limited warranty and a vehicle service contract (extended warranty). Following delivery, McCullough advised the salesperson that she had noted problems with the brakes, transmission, air conditioning, paint job, and seat panels, as well as the absence of rust proofing. The next day, the brakes failed and the car was returned to the
dealer for the necessary repairs. When the car was returned, McCullough discovered that the brakes had not been properly repaired and that none of the cosmetic work had been done. The car was returned several times to the
dealer to correct these problems and others that developed subsequently. On June 26, the car was again returned to the
dealer, who kept it for three weeks. Many of the defects were not corrected, however, and new problems with the horn and brakes arose. While McCullough was on a shopping trip, the engine abruptly shut off and the car had to be towed to the
dealer. Then, while she was on her honeymoon, the brakes again failed. The car was taken back to the
dealer with a list of 32 defects that needed correction. After repeated efforts to repair the car were unsuccessful, McCullough sent a letter to the
dealer calling for rescission of the purchase, requesting return of the purchase price, and offering to return the car on receipt of shipping instructions. She received no answer and continued to drive it. McCullough then filed suit. In the following May, the
dealer refused to do any further work on the car, claiming that it was in satisfactory condition. By the time of the trial, in June of the next year, it had been driven 35,000 miles, approximately 23,000 of which had been logged after McCullough mailed her notice of revocation. By continuing to operate the vehicle after notifying the seller of her intent to rescind the sale, did McCullough waive her right to revoke her original acceptance?
Dealer
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...