1. When would Smith have had to notify Atwell to properly revoke acceptance? 2. What does the...

Question:

1. When would Smith have had to notify Atwell to properly revoke acceptance?

2. What does the case teach you about the obligation to inspect? To notify?


This case arises from the sale of a rare 1965 Dodge alteredwheelbase race car specially manufactured by Chrysler Corporation for drag racing and used as a promotional vehicle.

Legendary drag racer Dave Strickler raced the Dodge during the 1965 season. The Dodge was then sold to another race car driver, Chuck McJury, who made substantial alterations to the vehicle. Among other things, McJury replaced the vehicle’s original 1965 Dodge Coronet body with a 1966/1967 Dodge Charger body. McJury sold the car to Melvin Smith. Melvin Smith then sold the Dodge to David Fengel in 1979 or 1980. By that time, the vehicle was in poor condition, described as a “body shell on wheels” with “[n]o engine” and “no transmission.”

Atwell (defendant) purchased the Dodge from Fengel in the early 1990s for $35,000. Fengel provided Atwell with documentation concerning the vehicle’s history, alterations, and chain of title, including the vehicle’s original 1965 certificate of title bearing Dave Strickler’s name and address. Atwell gathered parts and spent more than 10 years restoring the vehicle. Atwell then worked with Edward Strzelecki to sell the Dodge after he had finished restoring it. In February 2007, Strzelecki sent letters to potential buyers offering the vehicle for sale and providing certain information concerning the vehicle’s history, restoration, and chain of title. In one of those letters, dated February 4, 2007, Strzelecki wrote to Nicholas Smith describing the vehicle as “Dave Strickler’s 65 Dodge ‘FACTORY’ Altered Wheel–Base.”

Strzelecki explained that the Dodge was on loan to the Chrysler Museum in Auburn Hills, Michigan, where it was on “semi-permanent display.” Strzelecki claimed in his letter that the Chrysler Museum had appraised the vehicle and had insured it for more than $2 million.

Nicholas Smith (who is an officer of Bev Smith, plaintiff ) considered Strzelecki to be a friend. Strzelecki gave him a binder containing extensive information and documentation pertaining to the Dodge. Nicholas Smith confirmed that he had reviewed the contents of the binder before agreeing to purchase the Dodge from Atwell. Nicholas Smith traveled to Michigan and went to the Chrysler Museum with Strzelecki to personally inspect the vehicle. He walked around the vehicle at the Chrysler Museum but remained “outside of the rails that protected the car from visitors.”

Smith ultimately agreed to give the defendant $600,000 in cash, plus two other classic automobiles in exchange: (1) a 1964 Dodge Coronet Hemi Super Stock valued at $278,000, and (2) a 1964 Ford Thunderbolt valued at $250,000. The bill of sale contained the following: Steve Atwell hereby agrees to sell and Bev Smith Ford agrees to purchase the Dave Strickler 1965 Dodge AWB (“AWB” means “altered wheelbase.”) drag car, VIN W151191681. Seller represents this vehicle to be the real and authentic Strickler car, that he (Atwell) is the true owner of the car, and further that no liens or encumbrances exist against the vehicle.

After the sale, and while at a classic car event in Ohio in July 2008, a car historian informed Nicholas Smith that the Dodge had a “donor body” and was not the “real” Strickler car……………..    

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A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Business Law Principles for Today's Commercial Environment

ISBN: 978-1305575158

5th edition

Authors: David P. Twomey, Marianne M. Jennings, Stephanie M Greene

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