Darrow Purchases a New Car from Slippery Motors

question 12

Essay

Darrow purchases a new car from Slippery Motors.The retail installment contract states immediately above the buyer's signature in large,bold type: "There are no warranties that extend beyond the description on the face hereof" and "There are no express warranties that accompany this sale unless expressly written in this contract." Before purchasing the car,Darrow specifically informed Slippery's salesperson that he wanted a car that could be driven in a dusty area without needing mechanical repairs.Slippery's salesperson said to Darrow,"Nothing will go wrong with this car,but if it does,return it to us,and we will repair it without cost to you." Neither this statement nor any similar statement appears in the retail sales contract.Darrow drives the car into a dust storm.The air filter gets plugged up,and the car engine overheats,causing motor damage.Slippery Motors refuses to repair the engine under any warranty.Darrow claims that Slippery is liable for breach of the implied warranty of fitness for a particular purpose,that the Magnuson-Moss Warranty Act prohibits disclaiming this implied warranty,and that the salesperson's express warranty has also been breached.What are the problems with Darrow's claims?

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Definitions:

Factory Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries for management.

Budgeted Amount

Financial projections or planned amounts set aside for specific purposes, revenues, or expenses during a budget period.

Quantity Variance

The difference between the expected amount of materials or products required for production and the actual amount used, affecting budget or efficiency evaluations.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.