Mia wished to purchase an automobile. She saw a 2016 Mustang Convertible advertised for sale in the local newspaper. Mia talked to the owner, Erica and advised her that she didn't know much about cars but needed a reliable, comfortable car for long distance travel. Erica confirmed that she found her car comfortable (and fun) and that it was probably what Mia needed. Mia then examined the car and agreed to purchase it from Erica for $25,000.00. They both signed a short contract which contained a clause stating that the car was sold "as is and with no warranties whatsoever except as expressly set out herein". The agreement did provide that Erica would be responsible for obtaining a mechanical safety certificate before delivering the vehicle to Mia.

Assume The Sale of Goods Act is applicable.

(i)Erica did obtain the certificate and notified Mia that the car was ready. However, prior to Mia picking up the vehicle, it was mysteriously damaged. Who is responsible to fix the damages as between Erica and Mia?

(ii)If Mia found that the car was uncomfortable and not suitable for long distance highway travel, what action, if any could she bring against Erica and what would be the likely outcome?

(iii)If, the day after Mia purchased the car, the transmission failed and the engine seized up, what action could Mia take against Erica? What remedies could she claim andwhat defences would Erica likely raise? Explain.

(iv)Two weeks after purchase the car was repossessed by the St. Catharines Savings 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 Mia?Give the legal basis foryour answer.

Be certain to include the applicable principles as part of your answers.