Question
Round Tire Co. sells 1000 tires to Green Rent-a-Car for use on Green's fleet. The same day it sells one new tire to Betty Blue
Round Tire Co. sells 1000 tires to Green Rent-a-Car for use on Green's fleet. The same day it sells one new tire to Betty Blue for use on her car. For both sales, Round uses a sales agreement that includes: "LIMITATION OF REMEDIES. Round agrees to repair or replace any tire which Round determines was defective, within 12 months or 25,000, whichever comes first. Buyer agrees that this is Buyer's SOLE REMEDY, Buyer is not entitled to consequential or incidental damages or any other remedy of any kind." All of Round's tires prove defective. Green is so disgusted it immediately purchases substitute tires from another manufacturer. Green loses $12,000 in extra tire costs and $75,000 in lost rental payments because many of its cars must be off the road waiting for tires. Betty Blue's new tire blows out as she is driving to church, and Betty suffers broken bones. Green and Blue both sue. Predict the outcomes.
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