Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 8

When Craig Catrett bought a truck with 4,700 miles on it from Landmark Dodge, it had the manufacturer's new vehicle price sticker inside it. A salesman said it was a "demonstrator." Catrett also bought an extended warranty. The warranty contract said it only applied to new vehicles. However, the tag application, purchase contract, and finance agreement indicated that the truck was "used." Later, when Catrett took the truck to Landmark for service, he found out that the front end was misaligned and that a nonfactory weld had broken, making the truck inoperable and unsafe. He discovered that the truck was not a demonstrator but previously had been owned and involved in two wrecks. The prior owner had told Landmark it had been in a collision. Catrett sued for fraud. Landmark argued that Catrett had not shown justifiable reliance on its false statement. Had he?