Question 12

George recently sold a car, a 2011 Volkswagen Golf, to Michael who, excited at the prospect of buying and driving his very first car having just passed his driving qualification test, told George all about this on the telephone when agreeing the deal. Having collected the car it broke down later that day and Michael had it towed to a garage. The mechanic who examined it said that the car's catalytic converter had failed leading to the breakdown. The mechanic further advised that the part in question appeared to have been tampered with to disguise the problem. It was, he claimed, only a matter of time that the part would fail. Michael recalls having seen the car only in photographs supplied and described by George as being "fault-free" and "in excellent condition for its age". When challenged by Michael, George told him that he had never had any issues with the car while he owned it and was as shocked as anyone that it had developed a fault. Michael felt that the condition of the car as represented really helped persuade him to buy it. He is, however, now lacking confidence in the car and wants to hand it back and get a full refund of the purchase price. George offered to pay for necessary repairs purely out of good faith but declined Michael's request for a refund.

Required:

Discuss any legal obligations which George may have as the seller of the car and any rights Michael may have as the buyer with reference to relevant aspects of sale of goods, consumer rights and contract law.