Question

In: Operations Management

Sarah Saunders was interested in purchasing a new sport utility vehicle. Using the web page of...

Sarah Saunders was interested in purchasing a new sport utility vehicle. Using the web page of a large volume dealer in a nearby city, she provided the dealer with the make, model, color, and primary options for the vehicle she was seeking. The dealer indicated that he could obtain a vehicle meeting Sarah's specifications, quoted her a very favorable price, and offered to deliver the vehicle to her at the apartment house where she lived. Sarah accepted the offer and wired a deposit to the dealer. When the vehicle arrived, the truck driver refused to unload it from the car carrier or let Sarah inspect it until she had given him a certified check for the balance due. Then he gave her the title to the vehicle, unloaded it, and drove away. Sarah subsequently discovered a number of scratches in the paint and that some of the options she had bargained for -- such as an upgraded sound system -- were not on the vehicle. When Sarah complained to the dealer, he offered her a monetary "allowance" to cover the defects. Sarah also discovered that the vehicle had a tendency to stall and have to be restarted when she stopped at intersections. Despite repeated trips to the nearby city to have the dealer remedy the problem, those efforts have been unavailing. Sarah has indicated that she wants to return the vehicle to the dealer and get a vehicle that performs properly, but the dealer insists that she has to give him additional time to try to fix it.

1) Did Sarah have the right to inspect the vehicle before she paid the balance of the purchase price? Why or why not?

2) When Sarah first discovered the scratches on the SUV and that it did not conform to the contract specifications, could she have rejected the car and required the dealer to provide one that met the contract? Explain (using the rules regarding a buyer's right to reject).

3) Assuming Sarah accepted the SUV, does she have the right to revoke her acceptance? Explain (using the rules regarding a buyer's right to revoke acceptance). Does Sarah have to give the dealer the opportunities he wants to try to remedy the defects before trying to revoke acceptance? Explain

Solutions

Expert Solution

Unloading and loading the vehicle from the vehicle carrier is totally depending on the career itself. It is based on the terms of conditions and the instructions which are given to the carrier driver. If the driver is asked to take rest of the amount and then only unload the truck, sara has no authority to look or inspect the truck or unload it from the vehicle.

According to the sales of goods act 1979, buyer only has a right to reject the good until and unless he/ she have not accepted the good. Although in this is specific case sara is protected by sale of goods act 1893 which directly States that damaged goods or non proper functional goods can be returned as it is a clear breach of contract.
According to the contract the vehicle does not match the requirement of the specific contract and Sara is eligible to return the car but he has to present a prove that the vehicle was for lady damaged when received.

Yes Sarah does have an authority to reject the car as per the act of revocation on the uniform commercial code under article 2, if the buyer proves that the specific product is not functioning properly then he has full authority to return the product and revoke the acceptance of the product.
Definitely Sarah should provide some time to the dealer before trying to revoke the acceptance as per dealer is not denying the specific situation and wants to help Sara to get the specific problem fixed.


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