Don Mills Wished to Purchase an Automobile

question 22

Essay

Don Mills wished to purchase an automobile.He saw a 1994 Mustang advertised for sale in the local newspaper.Don talked to the owner,Mary Smyth,and advised her that he didn't know much about cars but needed a reliable,comfortable car for long-distance travel.Mary confirmed that she found her Mustang comfortable and it was probably what Don needed.Don then examined the car and purchased it from Mary for $5000.They both signed a short contract,which contained a clause stating that the car was sold "as is and with no warranties whatsoever."
a.If Don found that the car was uncomfortable and not suitable for long-distance highway travel,what action,if any,could he bring against Mary,and what would be the likely outcome?
b.If,the day after Don purchased the car,the transmission failed and the engine seized up,what action could Don take against Mary? What remedies could he claim and what defences would Mary likely raise?
c.If Don discovered that the Mustang was encumbered by a chattel mortgage that was not disclosed by Mary,what remedies would be available to Don? Give the legal basis for your answer.

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Definitions:

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus depreciation or amortization.

Intra-Entity Inventory Sales

Sales transactions of inventory between divisions or subsidiaries within the same parent company, not affecting consolidated financial results until sold externally.

Upstream

In the context of oil and gas, it refers to exploration and production activities; in supply chain management, it relates to the procurement of raw materials.

Downstream

In business, refers to processes or activities that occur toward the end of a supply chain, often associated with the distribution and sale of finished products.