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

Exercise 4

Husted purchased a used car from Reed Motors and obtained a loan through the First National Bank. The car broke down and could no longer be used. Husted refused to pay the balance due on the car. At the time the car was purchased, the contract signed by Husted contained a conspicuous clause stating that the buyer accepted the car in its present condition. The contract also contained other language indicating that the car was sold "as is." Was Husted responsible for paying the balance due on the car? (First National Bank of Elgin v. Husted, Ill. 205 N.E.2d 780)