Reference no: EM132232383
On July 19th of 2018, Max Motors Inc. sold a 2008 used Toyota van to Sarah Constance for $3,500. Constance went to Max Motors and contacted Fogarty, an experienced salesman for Max Motors. Before she finally made a deal for the car, she asked many questions about the car. Fogarty assured her that the car was in good condition and that he had driven the car several times. In addition, Fogarty stated that, “this is a car I can recommend and it is in A-1 shape.” Constance informed Fogarty that her husband had been transferred to another state, that her child was only two years old, and that she needed the car so she could join her husband. Fogarty assured her that he knew the car and knew the person who traded it in and it was “mechanically perfect.” He also told her that, “it would get her any place she wanted to go and not to worry.” Constance indicated she knew nothing about cars but would like to drive it. Fogarty replied this was not possible because he was the only man on duty at the lot that day and he could not leave to accompany her as required by company policy. Constance purchased the car in reliance on the statements made by Fogarty. Unfortunately, these statements proved to be incorrect. The transmission was faulty and the car broke down after being driven about 100 miles. The car was repaired by Master Mechanics at a cost of $1,500.00. Fogarty believed the statements he made were true and, as far as he knew, the car wasn’t in bad condition and he knew of no important defects in the car. He also told Constance that he could not warrant the car because it was over two years old and had in excess of 50,000 miles.
Required: Answer the following, setting forth reasons for any conclusions stated.
1. Discuss all relevant LEGAL issues raised by the facts above.
2. Discuss the legal arguments likely to be raised by both parties.
3. Write the decision for the COURT. Who will win and why?