Context of contract law for dealership

Assignment Help Operation Management

Reference no: EM1321675

Suppose Josh Hartly is interested in purchasing a new car and visits his local auto dealer. In the course of his negotiations, he tells the salesperson that he wants the 3.2 liter V-6 engine, and not the 3.9 liter because he has concerns regarding the fuel economy of the 3.9 liter engine. What neither Josh nor the salesperson knew was that the manufacturer had already stopped manufacturing both the 3.2 liter and the 3.9 liter, and was equipping the cars with a newly designed 3.5 liter engine.

Upon delivery, Josh discovers the new engine and refuses to take the car. The salesperson and the dealership refuse to cancel the sale, and refuse to refund Josh's deposit.

What do you think about this situation? Should parties to a sales contract be able to rescind a contract because of mutual mistake of fact? Why or why not? Did either party act unethically in this case? Why or why not? What application does the UCC have here? Finally, in the overall context of contract law, are there any winners or losers when a contract is rescinded based on mutual mistake of fact? Why or why not?

Reference no: EM1321675

Questions Cloud

Find percentage change in the required sample size : What percentage change in the required sample size would this produce?

Number of prizes in a randomly chosen multi-pack : If the packets are sold in multi-packs containing six packets, what is the distribution of the number of prizes in a randomly chosen multi-pack?

Statistical conclusion : The investor hires a researcher who randomly samples 19 warehouses that are for sale and finds that the mean price per square metre is $316,70, with a standard deviation of $12.90. If the researcher uses a 5% level of significance, what statistica..

Selecting suitable hypothesis : National average for 2-year leases is 30,000 miles. Select the suitable hypothesis.

Context of contract law for dealership : What do you think about this situation? Should parties to a sales contract be able to rescind a contract because of mutual mistake of fact? Why or why not? Did either party act unethically in this case?

Elucidate which would be farther to the right : If you were to draw the two nations' PPF's on the same graph, elucidate which would be farther to the right.

Telecommunications planning model : Discuss how to utilize the telecommunications planning model in detail and also explain the significance of the strategic management in order to support this model.

Determine the test value : Mauricio Cruz, a wine merchant for Cruz's Spirits Emporium, wants to determine if the average price of imported wine is less than the average price of domestic wine.

Bus collision avoidance protocol : Before effective Ethernet switching existed, some network designers are used an alternative bus collision avoidance protocol termed as the token bus protocol.

User Account

All Pages