Business Law Questions

Answer these 3 questions 4 sentences minimum for each question.

1. What is the difference between incidental damages and consequential damages? Please provide an example of each type of damages.

2. Michael’s Motors Emporium ran an advertisement in the local newspaper for a used Mazda CX-5. The advertisement stated that the CX-5 had 52,000 miles on it and had received all suggested maintenance in accordance with the Mazda manufacturer’s representations. The advertisement also stated that the CX-5 was in good operating condition. When Richard went into the dealership to inquire about the CX-5, the salesman repeated the assurances about the car’s operating condition and maintenance records. He told Richard that he had test driven the car previously and that it drove flawlessly during the test drive. Richard agreed to buy the CX-5, and he signed the standard purchase agreement used by Michael’s Motors Emporium. That purchase agreement provided, in pertinent part, that the car was sold “as is” and that there were no representations or warranties, express or implied, including the condition of the car, its merchantability or its fitness for any particular purpose. After paying the $12,000 purchase price, Richard took the CX-5 home. Within a week after the purchase, the CX-5 experienced serious mechanical problems. The car needed to be towed to a local auto repair center. The technician who serviced the car said that the car needed several expensive repairs and that many of the original parts had worn and need to be replacement. The technician told Richard that it was not possible for the car to have received regular manufacturer-suggested maintenance and be in the condition it was in. After paying almost $2000 in repair costs, Richard contacted a lawyer and sued Michael’s Motors Emporium, claiming breach of express and implied warranties. Assume that the UCC applies because an automobile is a good.

-What is the best argument that Richard can make and the rationale/support for that argument?

-What is the best argument that Michael’s Motors Emporium can make in defense and the rationale/support for that argument?

-What is the result of this litigation, based on the UCC?

3. Daniel contracts to buy a computer from Billy’s Electronics for $1,500. The contract calls for Billy’s electronics to service the computer quarterly for the first year and to tutor Daniel on how to use the software. Is this contract covered by the UCC or common law? Explain your answer fully.