Paul went to Car City Inc. to purchase a used car. The salesman told him Car City would guarantee any car it sold for 3 months for any problems and the sales brochure stated this also. Paul liked one car and asked the salesman if it had ever been used as a rental car. The salesman told him they had bought it from a private owner not a rental agency. The car cost $20,000 and Paul was going to pay for it over a 2 year period. Car City was concerned that Paul may not be able to meet the payments, so it requested that Paul get someone to guarantee his payments. Paul asked his 75 year old mother, Maria, who only understood Spanish, to guarantee his car loan. Maria didnt want to sign anything but Paul reminded her that she had often lent his sisters money. Maria went to Car City and said she didnt want to lose any money and the car salesman assured her that her signature was just a formality and she had no need to worry. Maria signed the guarantee. Six weeks later Paul had major problems with the car and he found out it had been a rental car for the first year. It would cost $15,000 to make the necessary repairs to make the car safe to drive. Paul was furious and told Car City he wanted them to take the car back and get a full refund. Car City just laughed and told him to read the contract, which clearly stated in bold type that the company only guaranteed the car for 2 weeks and this agreement was the entire agreement. Paul stopped making his payments and Car City has contacted Maria for the money. Maria is confused and says she owes them nothing. All parties have contacted lawyers. (10 Marks)

Please apply the law to the facts of this case. You should be discussing multiple legal issues that apply to the facts.