tom is a $17-$year$-$old high school Senior. He is looking forward to his upcoming birthday $($next month$)$ because he is planning to buy himself a nice used car. A week before his birthday, Tom goes to a used car lot and finds a great car. The dealer $($falsely$)$ assures Tom that the vehicle was a one$-$owner vehicle and that the car has never been wrecked.

Tom has saved $$5,000$ for the down$-$payment. However, the car costs $$15,000.$ The dealer provides financing, but Tom does not have sufficient credit to qualify for the loan. The dealer suggests that Tom could get someone to "guaranty" the loan. The dealer explains that a parent could enter into an agreement with the dealer to take responsibility for Tom's debt if he defaults on the loan. Tom calls his Mom. Tom's mother speaks with the dealer on the phone, provides the necessary information for a loan application, and orally agrees to guaranty Tom's loan up to $$10,000.$ No written contract is signed between Tom's Mom and the dealer.

Within a week of the purchase, Tom begins to experience serious car trouble. Black smoke pours from the tailpipes. The car shakes if Tom travels faster than $50$ mph$.$ When Tom runs a Car Fax report, he learns for the first time that the car has been involved in $2$ serious wrecks and that the car was previously owned by $13$ different owners. When he takes the car for an inspection, the mechanic informs Tom that the car is not safe to drive on the highway.

The next day, Tom notifies the dealer that he is disaffirming the contract. What obligations does Tom have under these circumstances? Why?

What obligations does the dealer have to Tom under these circumstances? Why?

Assume the dealer seeks to recover money from Tom's Mom. What are the legal issues related to the promise Tom's Mom made to guaranty the loan? What is the likely outcome if Tom's Mom is sued for the loan?