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John purchased for cash a Revenge automobile manufactured by Japanese Motors, Lt

ID: 444679 • Letter: J

Question

John purchased for cash a Revenge automobile manufactured by Japanese Motors, Ltd., from an authorized franchised dealer in the United States. The dealer told John that the car had a “24 month—24,000 mile warranty.” Two days after John accepted delivery of the car, he received an eighty-page fine print manual which stated, among other things, on pg 72:

The warranties herein are expressly in lieu of any other express or implied warranty, including any implied warranty of merchantability or fitness, and of any other obligation on the part of the company or the selling dealer.
Japanese Motors, Ltd., and the selling dealer warrant to the owner each part of this vehicle to be free under use and service from defects in material and workmanship for a period of twenty-four months from the date of original retail delivery of first use, or until it has been driven for 24,000 miles, whichever first occurs.

Within nine months after the purchase, John was forced to return the car for repairs to the dealer on thirty different occasions, and the car has been in the dealer's custody for over seventy days during these nine months. The dealer has been forced to make major repairs of the engine, transmission, and steering assembly. The car is now in the custody of the dealer for further major repairs, and John has demanded that it keep the car and refund his entire purchase price. The dealer has refused on the ground that it has not breached its contract and is willing to continue repairing the car during the remainder of the “24–24” period. What are the rights and liabilities of the dealer and John?

Explanation / Answer

John has the right to send his car for repairs for 24 months or 24000 miles driven whichever comes earlier. Other than that he has no right to claim his purchase price at all.

The dealer in this case has the obligation or liabilities of repairing the car for free till the expiry of the warranty.

The point to be noted is that, the amount of time the car is in the custody of the dealer for repairs should not be included in the 24 months of warranty.

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