Question
I. Willy Cheatham is trying to persuade Ivana Bayakar to buy Willy's used car. Willy tells Ivana that: (1) the car has been driven 20,000
I. Willy Cheatham is trying to persuade Ivana Bayakar to buy Willy's used car. Willy tells Ivana that: (1) the car has been driven 20,000 miles; (2) the car has new tires; and (3) the car is one of the finest cars ever made. In fact, Willy knows that the car has been driven 80,000 miles (although the odometer only shows 20,000 miles); he knows that the car's tires are old with almost no tread left; and he knows that automotive magazines consistently rate the car as one of the worst cars ever made. Ivana buys the car from Willy for $10,000. Shortly afterward, Ivana learns that the car has been driven 80,000 miles; she looks at the tires and sees that they are old with almost no tread; and she learns that automotive magazines consistently rate the car as one of the worst cars ever made. Ivana immediately sues Willy and alleges that each of the three statements Willy made constitutes fraud in the inducement. (a) Judgment for whom? In your answer, discuss each of the three statements and explain fully why each statement does or does not constitute fraud. (b) Assuming that judgment is awarded to Ivana, what remedies are available to her?
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