1.Andy wants to start his own houseboat rental business.To that end, he makes arrangements to buy five houseboats from Dwight's Boat Emporium ("DBE"), a custom houseboat builder.Andy was enticed to do business with DBE after seeing a Kijiji ad posted by DBE that said the following:

DWIGHT'S BOAT EMPORIUM-Come see our beautiful boats.New and used available.Our boats run beautifully and are easy to operate. Comfortable 10 person capacity.

While visiting the DBE store and negotiating the purchase, Andy asked Angela, the salesperson, whether a novice or beginner houseboater would easily be able to operate the houseboats.Angela had never operated one of the DBE houseboats, but, anxious to make the sale, said - "Sure, of course."Andy and DBE settle on a price of $35,000 per houseboat, with two slightly used ones delivered to Andy on May 1 and three other new ones to be delivered on June 15.

It turns out that there are many eager houseboat renters and Andy's business starts off well.Both used houseboats are fully booked for weekly rentals starting at the beginning of May, continuing through to the end of August.Andy has also booked renters for the new boats to be delivered on June 15.Andy expects to earn around $30,000 in revenue from the first two boats alone by the end of June.For July and August, he hopes to earn revenue for all five boats in the range of $90,000.00.

Problems arose during the first week of houseboat rentals.One renter called every day of his weekly rental, seeking help with boat operations.At the end of his rental period, that client complained bitterly about how complicated it was to run and operate the boat.The renter of the other boat never even made it onto the water with his houseboat, as the engine died on that houseboat.The engine repairs took that boat out of service for three weeks.

Andy now believes that the DBE houseboats are, in fact, unreliable clunkers and extremely complicated to operate.He believes he can obtain alternate houseboats on short notice from another supplier, Munder Differin, with the same specifications, but at a higher cost of $45,000.00 per boat.If he ceased using the DBE boats immediately and resumed operations when the Munder Differin boats arrive, Andy expects he will lose about $20,000.00 in revenue.However, Andy feels that the DBE boats are so poorly built and unsuitable for his rental business that it would be more detrimental to his business reputation to keep using the DBE boats at all.Andy is prepared to cancel client bookings rather than use DBE boats until the Munder Differin boats arrive.

Fully analyze the claims Andy may have against DBE, including remedies.You should offer some estimate of damages that could be claimed.(25 MARKS)