Paul needed a car so he went to Ace Motors and saw a used car he liked for sale for $18,000. The salesman Jeff told him that the car was in good shape and had never been in an accident. Paul bought the car and on the bill it stated "Ace guarantees its used cars for 90 days and no other representations or warranties apply. This agreement is the entire agreement." Paul drove the car and noticed it was difficult to steer at high speeds. Finally after 4 months Paul took it to a mechanic who told him that the car had a bent frame and it had clearly been in a serious accident and it was completely unsafe to drive. The car could only be sold for parts for $4,000 and must not be driven again. Paul immediately contacted Ace Motors and demanded his money back. Ace told Paul to read his contract and it is clear Ace owes Paul nothing. Paul said he never noticed the 90 days guarantee and anyway he should get his money back. Lawyers were called. Ace has another problem. One of its customer Julie had agreed to buy a new car for $25,000 and had paid $15,000 deposit when she ordered it. Just before the delivery date Julie was transferred to work in Hong Kong and knew she wouldn't need the car. Julie told Ace of her transfer and asked for her $15,000 back but Ace refused. Ace then re-sold the car Julie had ordered to another buyer for $22,000 several weeks later. Ace now wants $3,000 more from Julie, but she is demanding her full $15,000 back. Lawyers were called.

Discuss FULLY the legal issues involved and the rights and remedies of all the parties.