Commercial Law Keyed to Lopucki
Wilbur v. Toyota Motor Sales, U.S.A
Appellant purchased a Toyota Camry from Tri-Nordic Toyota. Prior to purchase Tri-Nordic informed Appellant that the car in question was used as a demonstrator and had been involved in an accident. Tri-Nordic assured Appellant that the damage had been fixed and the car retained no structural damage. When Appellant purchased the car she received a copy of Appellee’s “New Vehicle Limited Warranty” which stated that the warranty went into effect on the date the car was put “in service.” The warranty also stated that any repairs and adjustments required as a result of an accident are excluded. After purchase Appellant discovered that the bars ABS braking system did not work among other problems. Appellant took the car to several dealerships for repairs. Each time the dealership refused to honor the warranty because the car had sustained structural damage in an accident. Appellant filed suit. The district court held that because the damage from the accident was excluded form covera ge under the warranty as a matter of law, Appellee rightfully refused to repair Appellant’s car.
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