Shania owns a used car dealership, called Premier Used Cars (Premier).

Jennifer went to Premier to buy a low mileage sedan.  Jennifer expressed to  Shania that she only wants to purchase a car with less than 30,000 miles on it.  Shania directed her to a used Honda Civic with only 20,000 miles on it.  Shania advised Jennifer that she sell the Civic for a low price because it has been on the lot for over three months. 

The fact was that the Honda Civic has 100,000 miles on it.  Shania had rolled back the odometer to 20,000 miles that same morning.  Based on Shania's representations, Jennifer purchased the care for $12,000.00. 

Jennifer immediately had mechanical problems with the car and regretted buying it.  Later that week, Jennifer saw on television news that Shania was arrested for unfair and illegal business practices at Premier, including rolling back odometers, selling cars that had been in a flood without revealing the cars had been flooded, and similar practices. 

1.  Analyze whether Jennifer can disaffirm the contact based on Shania's fraudulent conduct and why.

• Include application of the four elements of fraud in your analysis.

2.  Assume instead of changing the odometer, Shania had promised to sell Jennifer the Honda Civic but before Jennifer could pick up the car, the car was destroyed, along with all of Shania's stock of car inventory at Premier, by a hurricane.