Question
Joan's son Paul owns a car dealership, Ace Motors, and he has problems with a customer Tina. On March 1st Tina agreed to buy a
Joan's son Paul owns a car dealership, Ace Motors, and he has problems with a customer Tina. On March 1st Tina agreed to buy a new car for $35,000 and she paid Ace Motors $7,000 when she ordered it. The car was to arrive on April 17, and the new car left the manufacturer's facility on a CN train headed to Ace Motors on April 12. But the train was going faster than it should have through an ice storm and the train slid off the icy tracks and flipped over and all the goods it was carrying were totally destroyed, including Tina's car. Ace Motors told Tina it would be 5 weeks before it could replace that car, but Tina needed a new car right now for work. So Tina bought an identical car from another dealer for $39,000. Tina is planning to sue Ace Motors for the extra $4,000 she paid for the replacement car plus she wants back her original $7,000. Ace Motors says it owes Tina nothing since it was going to get her a replacement car in 5 weeks. They have both contacted lawyers. Ace Motors also told CN rail it will sue CN rail for the lost profit of $5,000 it should have made on the sale of Tina's car. CN says it owes Ace Motors nothing as their written contract clearly states CN Rail is not liable for any losses or damages that may result from CN's transportation of goods. Ace Motors insists that CN is responsible for the train derailment so it is fully liable for Ace Motor's lost profits, despite that clause. Both parties have contacted their lawyers. Discuss all legal issues applying to this case.
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