Question

Fully answer the questions. 2. Right of Inspection. Jessie Rodriquez offered to deliver two trade-in vehicles—a 2003 Mitsubishi Montero and a 2002 Chevrolet Silverado pickup—to Dickey Chevrolet Buick, Inc., in exchange for a 2006 Silverado pickup. Dickey agreed. The parties negotiated a price, including a value for the trade-_in vehicles, plus cash. Rodriquez paid the cash and took the Silverado. On inspecting the trade-in vehicles, however, Dickey found that they had little value. The dealer repossessed the 2006 Silverado. Did the dealership have the right to inspect the goods and reject them when it did? Why or why not?

Answer 1

Issue: In the given situation, Jessie Rodriguez is a car dealer, who offers to sell two cars to Dickey in exchange for a 2006 Silverado, and some cash, and Dickey agreed. After the contract was concluded, Dickey found that the cars were of little value, and hence reposessed the 2006 Silverado. Did he have a right to do that?

Law: An agreement is formed when an offer is accepted. The agreement should be supported by consideration, capacity to contract, free consent, capacity to contract and lawful object, in order to culminate into a binding contract.

Application: There was agreed consideration in the contract between Jessie and Dickey. Consideration need not be adequate. The parties are assumed to have the capacity to enter into contracts, in other words they are expected to be rational people, and to understand the terms of the contract.Therefore, Dickey should have inspected the cars before the deal was made, and not after the contract was signed and performeed. There was no misrepresentation, false statements, or concealment on the part of the seller, therefore, Dickey's consent to the deal was free. Therefore, the contract is not voidable at Dickey's option.

As per the rule of Caveat Emptor ( Buyer Beware), the buyer should buy the goods only after properly examining them that they are suitable for his purpose, and that thay are merchantable. Thereafter, he cannot blame the seller for defects in the goods if he has neglected to do so.

Last but not the least, does Dickey have a legal right to reposess the car? Does it belong to him anymore ? The answer is No. The property in the 2006 Silverado passed to Jessie as soon as the price was paid and delivery was made.Therefore, Dickey does not have Jus in Rem anymore. And Dickey is not an unpaid seller.

Conclusions: The dealership had the right to inspect for sure, but before accepting Jessie's offer, and signing the contract. But they did not have the right to reject the cars after the exchange was concluded. There is no cooling off period when you buy a used car from someone. This means you usually cannot change your mind after you buy a used car. It is better to inspect the car carefully before signing a contract instead of trying to cancel a contract after it is signed, unless the dealer has made false and misleading statements about the car.