Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 3

Shalene Kolchek bought a Great Lakes spa from Val Porter, a dealer who was selling spas at the state fair. Porter told Kolchek that Great Lakes spas were "top of the line" and "the Cadillac of spas" and indicated that the spa she was buying was "fully warranted for three years." Kolchek signed an installment contract. Then, Porter handed her the manufacturer's paperwork and arranged for the spa to be delivered and installed for her. Three months later, Kolchek noticed that one corner of the spa was leaking onto her new deck and causing damage. She complained to Porter, but he did nothing about the problem. Kolchek's family continued to use the spa. Using the information presented in the chapter, answer the following questions.
Suppose that one year later, Pacific Credit Union contacted Kolchek and claimed that it had a security interest in the spa. Would this be a breach of any of the title warranties discussed in the chapter? Explain.