Bob told the owner of Cheesy Auto Sales and Cheesy Collision, Charlie, that he was interested in buying a used Lexus. Charlie attended at an auto auction business where he saw a 1998 Lexus. He was given a damage inspection report stating that $24,900 in repairs were necessary. Charlie calledBob and told him that he had located a Lexus which was damaged but that he could bring it to "showroom condition" for $5,000. On the auction day Bob was not allowed inside the auction; however he communicated with Charlie by telephone.Charlie successfully bid on the Lexus.He told Bob that he had paid $32,000.In fact Charlie paid $27,000 and purchased a car for his wife for the sum of $5,000.Initially Bob gave Charlie $5,000 for the repairs; however, Charlie demanded to more payments of $7,000 and $5,000 in November and Bob paid.When Bob went to pick up the car, Charlie demanded a further $5,000 before he would release the car.Again Bob paid. The repairs to this point totaled $22,000. Almost immediately Bob noted that the car did not drive well.Bob had it checked out by another auto repair shop and he was told that the car was not safe to drive. He demanded that Charlie take back the car. Charlie responded that he would try to sell it for him. That did not happen and therefore Bob retook possession and had repairs done at a cost of a further $15,000.

Bob sued Charlie, Cheesy Auto Sales and Cheesy Collision.

1. What is the legal issue:

2. What is the rule of law here?

3. Argument for Bob?

4. Argument for Charlie?