Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Marissa was interested in buying a used motorcycle from Victor, her regular mechanic. He told her that the engine on the motorcycle was in good

image text in transcribed
Marissa was interested in buying a used motorcycle from Victor, her regular mechanic. He told her that the engine on the motorcycle was in good shape. Marissa then entered into a written contract with Victor in which she would pay Victor S2,500 for the motorcycle. Marissa was going out of town on vacation, so they agreed that when she returned in a week, she would pay Victor and pick up the motorcycle. During that week, the manufacturer notified Victor that the motorcycle was being recalled because it had a faulty engine. Victor said nothing about the condition of the engine or the recall when Marissa came to pick up the motorcycle. They chatted about other matters; she gave him the $2,500, and took the motorcycle. Later, Marissa started having problems with the motorcycle and found out that Victor and other initial purchasers had been notified of the issue with the engine. She asked for a refund, accusing Victor of fraud. Victor refused on the basis that he did not make any misrepresentation. Who is correct and why? s. Jason is excited because a developer plans a subdivision full of high-priced homes that will adjoin his property, and Jason believes that the subdivision will significantly increase the value of his property. Jason is so pleased that he puts in a new swimming pool to celebrate. However, the developer changes his mind and decides not to develop the subdivision. Jason is angry and asks if he can sue the developer, particularly since he can establish reliance. What would you tell Jason and why? Marissa was interested in buying a used motorcycle from Victor, her regular mechanic. He told her that the engine on the motorcycle was in good shape. Marissa then entered into a written contract with Victor in which she would pay Victor S2,500 for the motorcycle. Marissa was going out of town on vacation, so they agreed that when she returned in a week, she would pay Victor and pick up the motorcycle. During that week, the manufacturer notified Victor that the motorcycle was being recalled because it had a faulty engine. Victor said nothing about the condition of the engine or the recall when Marissa came to pick up the motorcycle. They chatted about other matters; she gave him the $2,500, and took the motorcycle. Later, Marissa started having problems with the motorcycle and found out that Victor and other initial purchasers had been notified of the issue with the engine. She asked for a refund, accusing Victor of fraud. Victor refused on the basis that he did not make any misrepresentation. Who is correct and why? s. Jason is excited because a developer plans a subdivision full of high-priced homes that will adjoin his property, and Jason believes that the subdivision will significantly increase the value of his property. Jason is so pleased that he puts in a new swimming pool to celebrate. However, the developer changes his mind and decides not to develop the subdivision. Jason is angry and asks if he can sue the developer, particularly since he can establish reliance. What would you tell Jason and why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

5th Edition

0131445650, 9780131445659

More Books

Students also viewed these Finance questions