Business Law 5th Edition by David Twomey ,Marianne Jennings ,Stephanie Greene

Exercise 7

Harry Ulmas made a contract to buy a new car from Acey Oldsmobile. He was allowed to keep his old car until the new car was delivered. The sales contract gave him a trade-in value of $650 on the old car but specified that the car would be reappraised when it was actually brought to the dealer. When Ulmas brought the trade-in to the dealer, an Acey employee took it for a test drive and said that the car was worth between $300 and $400. Acey offered Ulmas only $50 for his trade-in. Ulmas refused to buy from Acey and purchased from another dealer, who appraised the trade-in at $400. Ulmas sued for breach of contract on the grounds of violation of good faith. Was he right [Ulmas v Acey Oldsmobile, Inc., 310 NYS2d 147 (NY Civ)]