samhoney
May 4, 2009, 07:58 AM
case study
Kate is looking at buying a second hand car. Kate likes the Honda Civic as she feels Hondas are reliable cars and reliability is her main concern as she has a busy life. She is a young accountant who also plays soccer for NSW and needs to get to practice straight after work 3 days a week.
Kate goes to a second hand Honda dealer and chats with Fred, the manager of the dealership. Kate test drives a red Honda Civic and is very happy with how the car drives.
Kate asks Fred whether the vehicle has ever been in a collision, to which Fred replies, “No, this car is in excellent condition, you are getting a really good bargain.” Kate feels the price is fair. Kate pays her deposit.
After she has agreed to the price, paid the deposit and the papers are signed, Fred tells Kate the dealership will include the first 2 services free if she gets it done at a garage called Mr Mechanic. Kate drives away in her new car.
A few weeks later Kate takes the car for a first service at Mr. Mechanic – as recommended by Fred. The technician tells Kate that the car has previously been a collision and that the parts used to repair it are not Honda parts. This has adversely affected the value of the car. When she investigates the history of the car further, Kate discovers Fred’s son had owned the car and had been the driver at the time of the collision.
The technician invoices Kate for the service.
Advise Kate:
(a) Whether she has a claim against the Honda dealership for breach of contract;
(b) If she is unable to prove that the statement made by Fred regarding previous collisions is a term of the contract, what other actions could she bring against the dealership under contract law?
(c) Whether she can claim the cost of the first service from Fred under contract law.
(In your answer, do not deal with the remedies available to Kate.)
Kate is looking at buying a second hand car. Kate likes the Honda Civic as she feels Hondas are reliable cars and reliability is her main concern as she has a busy life. She is a young accountant who also plays soccer for NSW and needs to get to practice straight after work 3 days a week.
Kate goes to a second hand Honda dealer and chats with Fred, the manager of the dealership. Kate test drives a red Honda Civic and is very happy with how the car drives.
Kate asks Fred whether the vehicle has ever been in a collision, to which Fred replies, “No, this car is in excellent condition, you are getting a really good bargain.” Kate feels the price is fair. Kate pays her deposit.
After she has agreed to the price, paid the deposit and the papers are signed, Fred tells Kate the dealership will include the first 2 services free if she gets it done at a garage called Mr Mechanic. Kate drives away in her new car.
A few weeks later Kate takes the car for a first service at Mr. Mechanic – as recommended by Fred. The technician tells Kate that the car has previously been a collision and that the parts used to repair it are not Honda parts. This has adversely affected the value of the car. When she investigates the history of the car further, Kate discovers Fred’s son had owned the car and had been the driver at the time of the collision.
The technician invoices Kate for the service.
Advise Kate:
(a) Whether she has a claim against the Honda dealership for breach of contract;
(b) If she is unable to prove that the statement made by Fred regarding previous collisions is a term of the contract, what other actions could she bring against the dealership under contract law?
(c) Whether she can claim the cost of the first service from Fred under contract law.
(In your answer, do not deal with the remedies available to Kate.)