How would you feel if you were in Gus’ shoes?
Is Bill obligate to pay for the repairs? Why or why not?
the case:
Bill sold his three-year-old motor home to Gus, a colleague. Gus received a great price
of $10,000 in the as-is sale. When asked about the condition, Bill said, “It uses a lot of
oil, but all of these motor homes do. I’ve not had any problems with it.” A few days
later, the motor home quit on the freeway, and Gus had it towed to a repair shop. The
repairman said, “This vehicle has a badly cracked block and needs a new engine. It’ll
cost about $5,000.” Gus returned to Bill, asking him, “What are you going to do for me
here? You sold me a defective vehicle.” Bill responded, “I didn’t know anything about
the cracked block. I sold the vehicle as is, and I don’t intend to do anything about it.”
