Question

Garth's Imports sells a car to Wally on credit for $30,000, which sputters in cold weather. What will the court likely consider?

Option 1: The court will void the contract due to the car's issues.
Option 2: Wally is not entitled to any repairs under the credit sale.
Option 3: Garth's Imports must cover all repair costs for the car.
Option 4: Wally can demand a full refund for the defective car.

Answer 1

The court's decision on whether Garth's Importsoption (3) must cover repair costs or refund Wally for the car that sputters in cold weather depends on the sale contract, warranty terms, service contract, and applicable consumer protection laws.

Step-by-step explanation:

If Garth's Imports sold a car to Wally on credit for $30,000 and the car sputters in cold weather, the issue does not automatically lead to the voiding of the contract or a full refund. Courts consider various factors, including the presence and terms of any warranty or service contract that may have been part of the sale.

Depending on the specifics, such as whether the car was sold as is or with a guarantee that it would work in cold weather, the dealer Garth's Imports may indeed be liable to cover repair costs or, in some cases, Wally might not be entitled to any remedy.

Furthermore, consumer protection laws and the implied warranty of merchantability might influence the outcome, requiring the car to function as such goods normally would. It is therefore crucial for Wally to review the sales contract and applicable warranties to understand what remedies might be available to him.