Question 1

On 7 November 2018, Mr Mike concluded a sale agreement with the company sportscar forever (the Company) for the sale of a sports car of a famous model for the price of EUR 160,000. The car was delivered to Mr Mike on 7 April 2019.

Two weeks after the car was delivered, Mr. Mike went to the company's office. He complained that the engine was vibrating and that the car encountered difficulties when accelerating, so that it could not exceed the speed of 130 kilometers per hour. Then the company took the car to repair, and Mr. Mike took it back a week later. Soon thereafter, Mike claimed that these problems had not been resolved. The company tried to repair the engine again, but because Mr. Mike claimed that there was still no improvement after the repair, the company finally replaced the engine on the 15th.

Then, on June 3, 2020, Mr. Mike returned to the company office and complained about the same problem with the engine again (vibration/speed limit of 130 km/h). Soon after, he sent a letter to get the price of 160,000 euros in return for the car. Company because the company failed to provide him with the sports car he expected.

The Company, through his new manager, Mr John, sent him a letter in response in which it stated that (i) since the replacement of the engine on 15 September 2019, Mr Mike covered a distance of 25.000 kilometers with the car, and therefore, even if there is a small issue with the engine, this does not justify his claim to nullify the sale of the car and (ii) the Company nevertheless accepts to repair the car for free one more time. Mr Mike refuses the offer for repair made by the Company and he insists with his request of reimbursement of the price of 160.000 EUR because of the fundamental issues of the engine of the car.

Then, Mr Mike read in French newspapers that Mr John, who is the manager holding the business license of the Company, had been convicted in France for fraud, embezzlement and criminal bankruptcy in a matter in which he had been the manager of a now bankrupt company selling food products. He had been sentenced to five years of prison but he had lodged an appeal so that the court decision is not definitive and he claims that he is extra-innocent.

Please advise Mr Mike and answer the following questions (as many details as possible):

(1) Pursuant to which legal basis could Mr Mike request the sale agreement to be rescinded/nullified so that he gets back the purchase price of EUR 160,000 against the return of the car?

(2)What is your assessment of the arguments of (a) Mr Mike in support of his request and (b) the Company to object to the request of Mr Mike ?

(3) If the Ministry of Economy becomes aware of the press coverage in France regarding Mr John, is there a risk for him to get the business license revoked and on which legal basis?