Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 13

Gibson, age 50, was invited to attend a formal social activity at a local organization in his hometown. Since formal attire was required, he decided to rent a tuxedo. On his way to the tux shop the evening before the social event, he decided to stop off at a local bar for a few drinks. By the time he arrived at the tux shop he was "feeling no pain." The salesperson who fitted Gibson for the tux could smell liquor on his breath and saw that he was a bit unsteady, but nevertheless fitted him for the tux. Gibson was then told that he could pick the tux up the next day at around 4 p.m. Gibson was required to sign the rental agreement, which contained the following statements: (1) the tux rental fee must be paid in advance; (2) the tux must be returned the day following the occasion for which the tux was rented; (3) there would be a late fee if the tux was not returned on time; and (4) there would be a charge for the rental of the tux even though it was returned unused. Gibson paid for the tux and left the store. He actually did not attend the social event and did not return the tux until three days later, but demanded the return of his rental fee claiming that he did not need or use the tux. The salesperson reminded Gibson that, according to the terms of the rental agreement, he was required to pay a late fee since the tux was not returned the next day and that the rental fee was not refundable even though he did not use the tux. Gibson claimed that he did not remember signing any such agreement, and besides, he could not find the rental agreement slip.
Questions
1. Was Gibson correct in saying that he did not need to pay either the late fee for the tux or the rental fee because he did not attend the formal social activity and did not use the tux?
2. Could Gibson claim intoxication and not pay any fees, claiming that he did not know that he was signing a legal agreement?
3. Should the salesperson have suspected that Gibson may haven intoxicated (liquor smell on his breath and was a bit unsteady) and not rented him the tux, which required the signing of the sales slip (a contract)?