Analyze whether Jennifer can disaffirm the contact based on Shania's fraudulent conduct and why; using the case
Question:
Analyze whether Jennifer can disaffirm the contact based on Shania's fraudulent conduct and why; using the case facts below.
- Include the application of the four elements of fraud in your analysis.
Facts: Shania owns a used car dealership, called Premier Used Cars (Premier).
Jennifer will be 18-years old in two months. She just graduated from high school and got a great job as an Assistant Manager at a local bank only 15 miles from her home. She went to Premier to buy a low-mileage sedan so she could get to work and have fun without the burdens of high school.
Jennifer expressed toShania that she only wants to purchase a car with less than 30,000 miles. Shania directed her to a used Honda Civic with only 20,000 miles on it. Shania advised Jennifer that she is selling the Civic for a low price because it has been on the lot for over three months.
The fact was that the Honda Civic has 100,000 miles on it. Shania had rolled back the odometer to 20,000 miles that same morning. Based on Shania's representations, Jennifer purchased the car for $12,000.00.
Jennifer immediately had mechanical problems with the car and regretted buying it. Later that week, Jennifer saw on television news that Shania was arrested for unfair and illegal business practices at Premier, including rolling back odometers, selling cars that had been in a flood without revealing the cars had been flooded, and similar practices.