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

Exercise 3

While Butler and his wife, Wanda, were browsing through Sloan's used car lot, Butler told Sloan that he was looking for a safe but cheap family car. Sloan said, ''That old Cadillac hearse ain't hurt at all, and I'll sell it to you for $5,950.'' Butler said, ''I'll have to take your word for it because I don't know a thing about cars.'' Butler asked Sloan whether he would guarantee the car, and Sloan replied, ''I don't guarantee used cars.'' Then Sloan added, ''But I have checked that Caddy over, and it will run another ten thousand miles without needing any repairs.'' Butler replied, ''It has to because I won't have an extra dime for any repairs.'' Butler made a down payment of $800 and signed a printed form contract, furnished by Sloan, that contained a provision: ''Seller does not warrant the condition or performance of any used automobile.'' As Butler drove the car out of Sloan's lot, the left rear wheel fell off and Butler lost control of the vehicle. It veered over an embankment, causing serious injuries to Wanda. What is Sloan's liability to Butler and Wanda?