Question

John bought a car from Apex Auto. The salesman, Bob, told John that it runs "like a well-oiled machine!" John drove the car around the block and it seemed fine. Three weeks after purchasing the car, it would not start. John noticed a large amount of oil on the driveway. He had it towed to a shop where the mechanic told him he would need a new engine. John sued Apex Auto for fraud. What must John PROVE to the court in order to prevail? What must Apex Auto PROVE to the court in order to prevail? What are the ethical issues involved in this situation and how should they be handled?

Answer 1

John must prove that the salesman made a false statement and he relied on it, while Apex Auto must prove the statement was not false or misleading.

Step-by-step explanation:

In order for John to prevail in his lawsuit against Apex Auto for fraud, he must prove that the salesman, Bob, made a false statement of fact about the car's condition with the intent to deceive John, and John justifiably relied on that false statement, which caused him harm. This means John needs to provide evidence that Bob knowingly lied about the car running "like a well-oiled machine".

On the other hand, Apex Auto must prove that Bob's statement was not false or misleading, or they were unaware of any engine issues at the time of sale and provided the car in the condition they believed it to be.

The ethical issues involved in this situation include truthfulness, honesty, and transparency. Apex Auto has an ethical responsibility to provide accurate information about the car's condition, and John has the right to expect honesty and transparency from the dealership. If Apex Auto deliberately misled John about the car's condition, it would be considered unethical behavior.