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

Exercise 15

Strouse bought a used motorcycle from Biker's World and agreed to pay for it in monthly installments. When Strouse asked about mileage, the salesperson stated that the motorcycle had been driven only 4,000 miles, had never been raced, and needed no major engine repairs. In fact, the motorcycle had been driven over 6,000 miles, had been entered in several racing contests, and needed major engine repairs. Strouse soon discovered the salesperson's misrepresentations, returned the motorcycle, and refused to make any more payments. In a breach of contract suit, can Strouse claim fraud as a defense?