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

Exercise 12

Romero made a deal with Scoggin-Dickey, a Chevrolet-Buick Dealer, to purchase a 2006 Silverado pickup. The dealer agreed on a price to include two trade-ins and a cash difference, although the trade-ins were not available for inspection when the deal was made. Romeo paid the cash and took possession of the 2006 pickup. The dealer, however, withheld title to the Silverado pending an inspection of the trade-ins. After several weeks, Romero brought in one of the trade-ins but the other one was towed to the dealership because it was not in running condition. The dealer determined that the two trade-in vehicles had no commercial value and took back the 2006 Silverado pickup. Romeo filed suit in the appropriate Texas court claiming that the dealer had no right to inspect or reject the trade-ins since he had already concluded a contract with this dealer to purchase the Silverado. Is Romero correct? (Romero v. Scoggin-Dickey Chevrolet-Buick, Inc., Ct. of App of Texas S.W. 3d)