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In 1992, Mark Cummings Entered into a Contract with Asilomar

Question 100

Multiple Choice

In 1992, Mark Cummings entered into a contract with Asilomar, a licensed contractor, to construct a single-family home. Asilomar substantially completed construction by June 2, 1992. Cummings then occupied the home until November 1998, when he sold the property to the Maycocks.
After moving into the home, the Maycocks experienced problems with the residence. They noticed movements in the slab and walls throughout the home, as well as buckling in walls and sagging and cracking of the garage floor. In September 2000, Tom Thomas, a civil engineer hired by the Maycocks to evaluate the property, concluded that the unusual movements in the structure indicated inadequate compaction of the backfill soils during construction.
The Maycocks filed suit against Asilomar in January 2001, alleging negligence and breach of express and implied warranties. Asilomar says that since it did not sell the home to the Maycocks it is not liable, and that there has been too much time that has passed to allow the Maycocks to recover.


A) Asilomar is excused from liability because the Maycocks were not the original dwellers in the home.
B) Asilomar is liable for the problems because the Maycocks were the owners of the home after it was built.
C) Asilomar is not liable because the implied warranty of habitability expires after one year.
D) The implied warranty of habitability ends after it is owner occupied.

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