Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 25

Halbman, a minor, purchased a 2008 Mercury from Lemke for $11,250. Under the terms of the contract, Halbman would pay $1,000 down and the balance in $250 weekly installments. Halbman purchased the car as a way to get around and have some fun. Upon making the down payment, Halbman received possession of the car, but Lemke retained the title until the balance was paid. After Halbman had made his first four payments, a connecting rod in the car's engine broke. Lemke denied responsibility but offered to help Halbman repair the engine if Halbman would provide the parts. Halbman, however, placed the car in a garage where the repairs cost $1,637.40. Halbman never paid the repair bill. Hoping to avoid any liability for the vehicle, Lemke transferred title to Halbman even though Halbman never paid the balance owed. Halbman returned the title with a letter disaffirming the contract and demanded return of the money paid. Lemke refused. As the repair bill remained unpaid, the garage removed the car's engine and transmission