John went to City Used Cars to buy a vehicle. The salesman showed John a 2016 SUV with 100,500 miles on it. John asked and was allowed to test drive the vehicle. John liked the vehicle and asked if there was any warranty on the vehicle. The salesman Rick stated the vehicle was no longer under the manufacturer's warranty but John could purchase a City Used Cars "life time warranty" which would cover all major repairs for the next 12 months. John asked if he could have an independent mechanic look at the vehicle. The salesman said there was no time, he had multiple offers on the vehicle because it was listed for such a great price. John decided to "take a chance" and purchase the vehicle. The price was fifteen thousand dollars ($15,000.00). John also purchased a City Used Cars warranty for an additional One thousand dollar ($1,000). One week after purchase the car's engine seized. John had the car towed back to the Used Car Lot. Rick the new owner of Advantage Used Cars informed John City Used Cars had just closed and his new company was not honoring the warranties of City Used Cars. He then informed John he had obviously purchased a car which requires substantial work on the engine. Rick estimated it would cost John at least five thousand dollars ($5,000.00) to repair the car. He also offered John a warranty on all repair work for an additional One thousand dollars ($1,000.00).

John is very upset. He does not have the funds to fix the car. John wants to sue someone over this.

Can John sue City Used Cars, Advantage Used Cars or Rick? If so what claims can he make? Has a crime been committed? Has a Tort been committed.

If a lawsuit is filed which form of alternative dispute resolution should each party consider and why?