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Consumer Law Keyed to Pridgen, 5th Ed.
Johnson v. Earnhardt’s Gilbert Dodge, Inc.
Citation:
132 P.3d 825 (2006)Facts
In May 2000, Brenda Johnson purchased a used 1997 Kia Sportage from Earnhardt’s Gilbert Dodge on an “AS IS” basis. The sales agreement expressly limited the implied warranty of merchantability to fifteen days or five hundred miles, whichever occurred first, as permitted under Arizona law. During the same transaction, Johnson applied to purchase a DaimlerChrysler service contract through Earnhardt. Both Earnhardt’s Finance Manager and Johnson signed the service contract application. Johnson paid one thousand two hundred thirty-five dollars in addition to the vehicle purchase price for the service contract, which was subsequently issued to Johnson by DaimlerChrysler. The service contract application contained language stating that Earnhardt would provide service to Johnson in accordance with the provisions of the service contract DaimlerChrysler would issue. Johnson experienced mechanical problems with the vehicle in June 2000, April 2001, and May 2001, which were not resolved to her satisfaction. Nearly a year after purchase, Johnson attempted to revoke acceptance of the vehicle and filed suit alleging breach of the implied warranty of merchantability.
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