Question
Jackwishedtopurchaseanautomobile.Hesawa2016MustangConvertibleadvertisedforsaleinthelocalnewspaper.Jacktalkedtotheowner,Maryandadvisedherthathedidn'tknowmuchaboutcarsbutneededareliable,comfortablecarforlongdistancetravel.Maryconfirmedthatshefoundhercarcomfortable(andfun)andthatitwasprobablywhatJackneeded.JackthenexaminedthecarandagreedtopurchaseitfromMaryfor$25,000.00.Theybothsignedashortcontractwhichcontainedaclausestatingthatthecarwassoldasisandwithnowarrantieswhatsoeverexceptasexpresslysetoutherein.TheagreementdidprovidethatMarywouldberesponsibleforobtainingamechanicalsafetycertificatebeforedeliveringthevehicletoJack. Assume TheSaleofGoodsAct isapplicable. (i)MarydidobtainthecertificateandnotifiedJackthatthecarwasready. However,prior to Jackpickingupthevehicle,itwasmysteriouslydamaged.WhoisresponsibletofixthedamagesasbetweenJackandMary? (ii) IfJackfoundthatthecarwasuncomfortableandnotsuitableforlongdistancehighway travel, what action, if any could he bring against Mary and what would be the
Jackwishedtopurchaseanautomobile.Hesawa2016MustangConvertibleadvertisedforsaleinthelocalnewspaper.Jacktalkedtotheowner,Maryandadvisedherthathedidn'tknowmuchaboutcarsbutneededareliable,comfortablecarforlongdistancetravel.Maryconfirmedthatshefoundhercarcomfortable(andfun)andthatitwasprobablywhatJackneeded.JackthenexaminedthecarandagreedtopurchaseitfromMaryfor$25,000.00.Theybothsignedashortcontractwhichcontainedaclausestatingthatthecarwassold"asisandwithnowarrantieswhatsoeverexceptasexpresslysetoutherein".TheagreementdidprovidethatMarywouldberesponsibleforobtainingamechanicalsafetycertificatebeforedeliveringthevehicletoJack.
AssumeTheSaleofGoodsActisapplicable.
(i)MarydidobtainthecertificateandnotifiedJackthatthecarwasready.
However,prior to Jackpickingupthevehicle,itwasmysteriouslydamaged.WhoisresponsibletofixthedamagesasbetweenJackandMary?
(ii) IfJackfoundthatthecarwasuncomfortableandnotsuitableforlongdistancehighway travel, what action, if any could he bring against Mary and what would be the likely outcome?
(iii) If, the day after Jack purchased the car, the transmission failed and the engine seized up, what action could Jack take against Mary. What remedies could he claim and what defences would Mary likely raise? Explain.
(iv) Two weeks after purchase the car was repossessed by the St.Catharines Saving Bank. The Bank discloses that it had registered a Chattel Mortgage against the car for an outstanding loan of $20,000.00. What remedies would be available to Jack Give the legal basis for your answer.
Be certain to include the applicable principles as part of your answers.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started