Reference no: EM133247177
Joe is driving down a road and sees a riding lawn tractor for sale in the front yard of Ron's house. Stopping - he speaks to Ron about the lawn tractor and why he is selling it. Ron states that he recently purchased a newer model and that the one for sale "...has been around...". Joe asks how it runs and Ron states "..the engine runs like a top... I just wanted a newer lawn tractor.
Joe starts the law tractor and the engine does, in fact, run smoothly. Joe writes Ron a check for the agreed price of $500.00, and asks for a bill of sale for tax records. Ron fills out a receipt, and includes in it the wording in capital letters 'SOLD AS IS'. Joe asks why Ron did that and the response is, "You know, due to the age of it".
Joe does not have a trailer and Ron tells him that he will drop it off at Joe's house tomorrow while Joe is at work. The next day, Joe comes home and there is the tractor. When he starts it he immediately discovers that it will not move - and upon examination finds out that the transmission is shot. To replace the transmission it will cost at least $700.00.
Joe confronts Ron and demands his money back, upon which Ron refuses as he points out that he placed in the bill of sale the clause 'SOLD AS IS' and tells him "You bought it as is...". Joe tells Ron that he is going to sue and contacts his attorney citing fraud as the basis for the legal action. Joe also tells Ron that he stopped payment on the check, of which Ron says that he will have him arrested for doing so.
Question:
- Does Joe have a legal recourse against Ron? Explain
- Does the introduction of the clause 'SOLD AS IS' nullify any warranty as to the item either expressed or implied on the part of Ron? Explain.
- Was Ron required to tell Joe that the transmission was, in fact, inoperable? Explain.
- Can Ron have Joe arrested for Issuing a Fraudulent Check?
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