James Has an Old Car for Sale

question 21

Essay

James has an old car for sale.Betty views the car and in response to a question about the age of the car,James replies,"I think it is a 1929 Ford." Betty purchases the car,but the written contract makes no mention of the year of the car.Actually,the car is a 1932 Ford.What remedy does Betty have? What defenses are available to James?

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Definitions:

Overdue Account

A financial account that has not been paid by its due date, thereby incurring late fees or other penalties.

Current Liabilities

Short-term financial obligations due within one year or within the entity's operating cycle, whichever is longer, necessary for the ongoing operations of the business.

Interest Expense

The charge an entity incurs for using borrowed capital over a set period.

Interest Payable

The amount of interest expense that has accumulated but has not been paid by the end of the accounting period.