Question
Amanda purchased a used automobile from Hampton Motors, Inc. The salesperson told her that the car had been driven approximately 16,000 miles, when actually it
Amanda purchased a used automobile from Hampton Motors, Inc. The salesperson told her that the car had been driven approximately 16,000 miles, when actually it had been traded in to Hampton Motors with 55,000 miles and had required major engine repairs, which were made by Hampton. The sales contract with Amanda specified that Hampton made a warranty of "30 days or 1,000 miles." Serious engine trouble developed after the expiration of the warranty period. Amanda sued Hampton Motors for fraud. It defended on the ground that all statements by its salesperson had been merged into the sales contract and that its only obligation was under the warranty, which had expired. Is Hampton liable for fraud or not?
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