Rawson v. Conover

2001 UT 24, 20 P.3d 876, 44 U.C.C. Rep. Serv. 2d (West) 420, 416 Utah Adv. Rep. 39, 2001 Utah LEXIS 42, 2001 WL 228359
CourtUtah Supreme Court
DecidedMarch 9, 2001
Docket990935
StatusPublished
Cited by17 cases

This text of 2001 UT 24 (Rawson v. Conover) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rawson v. Conover, 2001 UT 24, 20 P.3d 876, 44 U.C.C. Rep. Serv. 2d (West) 420, 416 Utah Adv. Rep. 39, 2001 Utah LEXIS 42, 2001 WL 228359 (Utah 2001).

Opinion

RUSSON, Associate Chief Justice:

1 1 On writ of certiorari, James and Rebecca Rawson seek review of the Utah Court of Appeals' memorandum decision affirming Judge Brian's and Judge Iwasaki's grants of summary judgment in favor of Kim and Karen Conover, Paul Clark, K & K Sales, Inc. ("K & K Sales"), and Old Republic Surety Co. ("Old Republic") (collectively, "defendants"). We affirm.

*879 BACKGROUND

12 K & K Sales was a licensed motor vehicle dealership owned by Kim and Karen Conover and bonded by Old Republic. Paul Clark is a friend of the Conovers. In October 1992, Clark attended an auto auction with Kim Conover. interested in purchasing a family vehicle at the auction. However, because only licensed auto dealers are allowed to participate in the auto auctions, Kim Conover, as K & K Sales, purchased a salvaged 1989 Ford Aerostar van (the "van") for Clark. At the time of the sale, Kim Conover and Clark were told the van had suffered structural damage in an accident. Clark claimed he intended to have the van repaired and restored for use by his wife and family, and Kim Conover estimated that the repairs could be fairly easily performed. Clark claimed he was-

13 Over the ten months following the purchase of the van, Clark contracted with various parts and repair shops to restore the vehicle. He claimed that he neither supervised nor performed any of the repairs himself though he did pay for all parts and service performed. During this period, title to the van remained in the name of K & K Sales; however, Kim Conover claimed that he did not supervise, perform, or inspect any of the repairs on the van except to replace the windshield.

14 Clark claimed that after the van was substantially repaired, his wife test drove it, but finding it too long to maneuver, she did not want to keep it. Therefore, Clark put an ad in the newspaper to find a buyer for the van and listed his home phone number as the contact.

T5 In July 1998, the Rawsons saw the newspaper ad and called Clark. They arranged to see the van and went to Clark's home. The Rawsons test drove the van with Clark riding along. The Rawsons said that Clark told them the van had been in an accident and was salvaged; the front end had been damaged, so it had been rebuilt. The Rawsons told Clark they had five children and it was important to them that they have a safe vehicle. They claimed that Clark told them the van had been "properly repaired" and because he had intended to use the van for his wife and family, he felt it was safe. Clark also showed the Rawsons an itemized list of the costs for the repairs done on the van.

T6 In addition, Clark agreed to allow the Rawsons to have their own mechanic inspect the van as long as Clark accompanied the vehicle. However, the Rawsons declined to do so. They stated in their depositions that they did not look at or ask to look at any part of the van that had been rebuilt. They did, however, request that Clark have it safety inspected, which he did.

17 A few days after first looking at the van, in early August 1998, the Rawsons called Clark and agreed to purchase it. They met Clark at the Department of Motor Vehicles in Rose Park to effectuate the sale. It was at that time that Clark explained to the Rawsons that the van was actually registered to K & K Sales. Therefore, Clark explained, Kim Conover, as K & K Sales, had signed the registration over to the Rawsons, and there were a few documents Clark wanted the Rawsons to sign.

18 The registration, which James Rawson claimed he read before signing, indicated that the van was "Rebuilt" and had a "Utah Salvage Title." James Rawson also signed a K & K sales agreement at the time of purchase that stated the van was used and a rebuilt salvage. The pertinent terms on the back of the sales agreement stated:

1. Purchaser warrants that he has inspected the vehicle to his satisfaction and purchases the vehicle "AS 18." If purchaser has not inspected the vehicle, he waives his right to do so.
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5. NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OF [sic] FITNESS FOR A PARTICULAR PURPOSE, ARE MADE BY K & K WITH RESPECT TO THE USED MOTOR VEHICLE OR MOTOR VEHICLE CHASSIS FURNISHED HEREUNDER EXCEPT AS MAY BE EXPRESSED IN WRITING BY K & K FOR SUCH *880 USED MOTOR VEHICLE OR MOTOR CHASSIS. WHICH WARRANTY, IF SO EXPRESSED IN WRITING IS INCORPORATED HEREIN AND MADE A PART HEREOF.
6. The vehicle covered by this agreement may be a rebuilt or restored vehicle as defined by U.C.A. § 41-1-86.5(1)(@) and § 41-1-86.6(9). Purchaser acknowledges that this has been disclosed and that purchaser has seen the previous title or salvage certificate.
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10. Purchaser agrees to secure all necessary inspections to facilitate licensing and restoration of the vehicle. Purchaser agrees to indemnify and hold harmless K & K from any damages that may arise from the failure of purchaser to secure inspections. The vehicle is sold "AS IS" and purchaser is solely responsible for obtaining necessary inspections.
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19. No agreement, verbal or otherwise, not contained in writing in this agreement on this document will be recognized.

James Rawson stated in his deposition that even though he only glanced at the terms and conditions when he signed the sales agreement, he did understand he was purchasing a vehicle without a warranty in "as is" condition.

9 Finally, as part of the purchase, James Rawson signed a document entitled "Buyers Guide." On the front of the document in very large bolded type were the words "AS IS-NO WARRANTY." The box next to this statement had been checked. At the top of this document was the statement "IMPORTANT: Spoken promises are difficult to enforce. Ask the dealer to put all promises in writing. Keep this form." Further down, the words "Vehicle is a rebuilt salvage title" were handwritten. The second page of this document listed several major défects that could occur in used motor vehicles, and at the bottom was the statement "Important: The information on this form is part of any contract to buy this vehicle. Removal of this label before consumer purchase (except for purpose of test-driving) is a violation of federal law (16 C.FE.R. 455)" James Rawson stated in his deposition that even though he did not read the document closely before signing it, he did notice that there was no warranty and that the vehicle was being sold "as is."

10 James Rawson agreed in his deposition that Kim Conover, individually or as K & K Sales, made no oral representations at all concerning the condition of the van and no written representations aside from the documents discussed above. In fact, at no time before the sale did the Rawsons meet or talk to Kim Conover or visit the premises of K & K Sales. Furthermore, when asked in his deposition whether he considered any verbal statement by Clark to be a warranty concerning the vehicle, James Rawson replied, “N0.”

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Cite This Page — Counsel Stack

Bluebook (online)
2001 UT 24, 20 P.3d 876, 44 U.C.C. Rep. Serv. 2d (West) 420, 416 Utah Adv. Rep. 39, 2001 Utah LEXIS 42, 2001 WL 228359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rawson-v-conover-utah-2001.