Hensley v. Colonial Dodge, Inc.

245 N.W.2d 142, 69 Mich. App. 597, 20 U.C.C. Rep. Serv. (West) 329, 1976 Mich. App. LEXIS 794
CourtMichigan Court of Appeals
DecidedJune 24, 1976
DocketDocket 23968
StatusPublished
Cited by6 cases

This text of 245 N.W.2d 142 (Hensley v. Colonial Dodge, Inc.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hensley v. Colonial Dodge, Inc., 245 N.W.2d 142, 69 Mich. App. 597, 20 U.C.C. Rep. Serv. (West) 329, 1976 Mich. App. LEXIS 794 (Mich. Ct. App. 1976).

Opinions

Danhof, J.

On February 13, 1974, the plaintiff brought the present action seeking to recover on three counts against the defendant in connection with the sale of a used automobile. At the nonjury trial on April 4, 1975, the trial court granted the defendant’s motion for a directed verdict at the close of the plaintiff’s proofs.

[600]*600On May 16, 1973, the plaintiff entered a purchase agreement with the defendant to buy a 1969 Plymouth Roadrunner automobile. On the back of the agreement in small print, the following "condition” is stated:

"No warranties, expressed or implied, are made by the dealer with respect to used motor vehicles or motor vehicle chassis furnished hereunder except as may be expressed in writing by the dealer for such used motor vehicle or motor vehicle chassis, which warranty, if so expressed in writing, is incorporated herein and made a part hereof.”

When the plaintiff visited the defendant’s used car lot, he observed a sign which read: "Colonial Dodge USED CARS 1 YEAR WARRANTY.”

At the trial, the plaintiff testified that when, he first received possession of the car on May 18, 1973, he drove it three or four blocks when he noticed the windshield wipers and the brake lights were not functioning properly. He took the car back to the defendant to correct these problems. When he next received the car from the defendant, the plaintiff stated he had driven it "half way home” when the car started to lose compression and it slowed down to 20 or 25 miles per hour. The engine also sounded as if it were "missing quite badly”. When the plaintiff arrived home with the car, which was about six miles from the defendant’s lot, he asked his brother to come over to look at the car. The plaintiff’s brother first looked at the car about two or three hours after the plaintiff had driven the car off the defendant’s lot.

Unable to get the car running again, the plaintiff then took the car to a service station, which kept the car for about one week. At the end of this period of time, the plaintiff was able to see the [601]*601inside of the engine, which through the work of the service station was now open to view. He stated that he saw "busted and bent push rods”.

The plaintiff went back to the defendant with some of these push rods. The record is not clear as to how long it was after he saw the broken push rods that he returned to the defendant, but it was no more than four days. The plaintiff first talked to one man at the defendant’s lot, who stated that the plaintiff could get a 25% discount on parts and labor. The plaintiff next talked to the manager at the defendant’s lot, who told the plaintiff he would have the mechanics check into it. At this point, the plaintiff had the car towed to the defendant’s dealership.

The manager next informed the plaintiff that the engine would have to be replaced. He asked the plaintiff if he would try to get a replacement engine. The plaintiff did locate one. However, upon bringing it to the defendant, the plaintiff was informed by the manager that the replacement motor would not fit this particular car. The plaintiff then had the engine put in the car by the party from whom he had purchased it. After this work was done, the plaintiff testified that he had problems with the clutch pedal and the transmission.

The complaint in this matter contains three counts. The first count relates to the nonreceipt of the certificate of title by the plaintiff. The second count alleges that the defendant warranted by implication that the automobile was of merchantable quality and fit for use and the purposes intended. The third count alleges that the defendant misrepresented through the use of its sign noted above that the automobile was covered by a warranty.

[602]*602The trial court ruled that, as the sign did not indicate what the used car dealer was warranting, it would construe it as an invitation to do business. It found the first count to be moot because the plaintiff had subsequently received the certificate of title. As to the second count, the trial court found the defendant was relieved of any further responsibility because the plaintiff did the wrong thing in having the third party install the replacement engine. The trial court stated there was no testimony from the party who replaced the engine and the court did not know if it had to be replaced.

The dispositive issue on appeal is whether the trial court correctly granted the defendant’s motion for a directed verdict.

On an appeal from a directed verdict, this Court will view the facts in the light most favorable to the plaintiff. Kieft v Barr, 391 Mich 77, 79; 214 NW2d 838 (1974).

We agree with the trial court that the first count of the complaint dealing with the transfer of the certificate of title is now moot.

As to the second count, the plaintiffs vehicle was covered by an implied warranty in the instant case. Unless otherwise excluded, it is implied in the contract for the sale of goods, where the seller is a merchant in respect to goods of that kind, that the goods will be merchantable, or "are fit for the ordinary purposes for which such goods are used”. MCLA 440.2314; MSA 19.2314. An implied warranty of merchantability may be excluded by language that is a part of the contract which mentions merchantability in writing that is conspicuous or by other language "which in common understanding calls the buyer’s attention to the exclusion of warranties and makes plain that there [603]*603is no implied warranty.” MCLA 440.2316(2), (3)(a); MSA 19.2316(2),. (3)(a). In the present case, the language on the reverse side of the purchase agreement was not sufficient to exclude an implied warranty of merchantability. Thus, the vehicle was covered by such a warranty.

It should also be noted that an implied warranty, as here, is breached when tender of delivery is made and does not extend to later performance of the goods unless this is expressly provided for. MCLA 440.2725(2); MSA 19.2725(2). No such provision was made herein.

The trial court ruled that the defendant was relieved of further responsibility because the plaintiff had the replacement engine installed. This action by the plaintiff in the present case relates to the damage issue, not to whether he was able to establish a claim to relief by his proofs.

The measure of damages for breach of warranty is set forth in MCLA 440.2714(2); MSA 19.2714(2):

"The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount.”

Incidental and consequential damages may also be recovered. MCLA 440.2714(3); MSA 19.2714(3).

In viewing the facts in the light most favorable to the plaintiff, it appears the implied warranty of merchantability was breached when the plaintiff received the automobile from the defendant. The brief initial period when the plaintiff drove the car a few blocks and had to return to get the windshield wipers and brake lights repaired will not operate to his detriment. The testimony of the [604]*604plaintiff clearly indicates the engine was not operating properly when he next drove away from the defendant’s lot. His testimony also indicates that within one week he was able to observe the "busted and bent push rods”.

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Hensley v. Colonial Dodge, Inc.
245 N.W.2d 142 (Michigan Court of Appeals, 1976)

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Bluebook (online)
245 N.W.2d 142, 69 Mich. App. 597, 20 U.C.C. Rep. Serv. (West) 329, 1976 Mich. App. LEXIS 794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hensley-v-colonial-dodge-inc-michctapp-1976.