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1 Luna wished to purchase an automobile. She saw a 2019 Mustang Convertible advertised for sale in the local newspaper. Luna talked to the owner,
1 Luna wished to purchase an automobile. She saw a 2019 Mustang Convertible advertised for sale in the local newspaper. Luna talked to the owner, Ginny and advised her that she didn't know much about cars but needed a reliable, comfortable car for long distance travel. Ginny confirmed that she found her car comfortable (and fun) and that it was probably what Luna needed. Luna then examined the car and agreed to purchase it from Ginny for $35,000.00. They both signed a short contract which contained a clause stating that the car was sold "as is and with no warranties whatsoever except as expressly set out herein". The agreement did provide that Ginny would be responsible for obtaining a mechanical safety certificate before delivering the vehicle to Luna. Assume The Sale of Goods Act is applicable. (i) Ginny did obtain the certificate and notified Luna that the car was ready. However, prior to Luna picking up the vehicle, it was mysteriously damaged. Who is responsible to fix the damages as between Ginny and Luna? (ii) If Luna found that the car was uncomfortable and not suitable for long distance highway travel, what action, if any could she bring against Ginny and what would be the likely outcome? (iii) If, the day after Luna purchased the car, the transmission failed and the engine seized up, what action could Luna take against Ginny? What remedies could she claim and what defences would Ginny likely raise? Explain. (iv) Two weeks after purchase the car was repossessed by the St. Catharines Savings Bank. The Bank discloses that it had registered a Chattel Mortgage against the car for an outstanding loan of $25,000.00. What remedies would be available to Luna? Give the legal basis for your answer. Be certain to include the applicable principles as part of your answers. Problem 2 Minerva, a 65 year old grandmother had been a legal secretary with the largest law firm in Niagara for 40 years. As a result of her competence, hard work and sunny disposition she had earned the position of executive assistant to one of the firm's senior partners. Minerva was paid an annual salary of $75,000.00. On December 22nd last year, after a pleasant exchange of "good mornings" Minerva's boss requested that she get him a cup of coffee and bring coffee to the clients in the boardroom. "Not likely" said Minerva, "It's not in my job description". Minerva was immediately fired. She was escorted out of the office by the security guard and left on the street. Her request to use a telephone to call a taxi was rejected. Minerva commenced an action for unjust dismissal. In addition, she has requested $200,000.00 in damages for the humiliation which she suffered. One of the other legal assistants advised the firm that Minerva had spent a significant amount of time on the internet and social media during office hours. A search of her internet activity and email revealed that Minerva had spent an average of 1 hour per day on the internet and had sent a number of emails and social media posts to her friends which included insulting and derogatory comments about the lawyers, other employees and clients of the firm. Minerva acknowledged that this was true, but claimed it was necessary that she keep up with current events and that the emails and social media posts were all "in fun" and were intended to be "jokes". Minerva does not feel that she can obtain a similar job at her age and was, in fact, considering retirement. Required: Provide the judgment which would be rendered in this case with particular reference to the positions advanced by each of the parties. If Minerva is successful, what damages would she receive? Be certain to include an explanation of the applicable legal principles in your
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