In August of 2002, Duncan went to Smith Motors to look for a used car to buy. He test-drove a 1995 Corvette with an odometer reading of 52,000. Duncan assumed that the heater worked, but he did not turn it on to test it because it was so hot outside. The salesperson assured him that the car was in "mint condition." Duncan decided to buy the car. He later learned that the heater was broken, the radio would not work, the car would not start when the temperature dropped below 40 degrees, and that the car really had 152,000—not 52,000—miles on it.
Can Duncan get out of this contract and get his money back?
Did Smith Motors have a duty to disclose the defects in the car?
Was the statement that the car was in "mint condition" a misrepresentation?
Did Duncan have the obligation to investigate the car more thoroughly?
What are the ethical concerns involved in this situation?
