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13. Ace Auto Sales, Inc., sold Williams a secondhand 15. Webster purchased a drill press for $475 from car for $9,000. One day Williams parked

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13. Ace Auto Sales, Inc., sold Williams a secondhand 15. Webster purchased a drill press for $475 from car for $9,000. One day Williams parked the car in a Martinson Hardware, Inc. The press has proved to be shopping center parking lot. When Williams returned to defective and Webster wishes to rescind the purchase the car, Montrose and several policemen were waiting. based upon a breach of implied warranty. Which of the It turned out that the car had been stolen from Mon- following will preclude Webster's recovery from trose who was rightfully claiming ownership. Subse-. Martinson? quently, the car was returned by Williams to Montrose. a. The press sold to Webster was a demonstra- Williams seeks recourse against Ace Auto Sales who tion model and sold at a substantial dis- had sold him the car with the usual disclaimer of count; hence, Webster received no implied warranty. Which of the following is correct? warranties. a. Since Ace Auto Sales' contract of sale dis- b. Webster examined the press carefully, but claimed "any and all warranties" arising in as regards the defects, they were hidden de- connection with its sale to Williams, fects which a reasonable examination Williams must bear the loss. would not have revealed. b. . Since Ace Auto and Williams were both C. Martinson informed Webster that they innocent of any wrongdoing in connection were closing out the model at a loss due to with the theft of the auto, the loss will rest certain deficiencies and that it was sold upon the party ultimately in possession. "with all faults." C. Had Williams litigated the question of d. The fact that it was the negligence of the Montrose's ownership to the auto, he manufacturer which caused the trouble would have won since possession is nine- and that the defect could not have been tenths of the law. discovered by Martinson without actually d. Ace Auto will bear the loss since a war- taking the press apart. ranty of title in Williams' favor arose upon the sale of the auto. 16.. Viscount Appliances sold Conway a refrigerator. wishes to disclaim the implied warranty of

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