ORANGE MOTORS OF CORAL GABLES, INC., APPELLANT,
v.
DADE COUNTY DAIRIES, INC., A FLORIDA CORPORATION, APPELLEE
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The court held that a disclaimer of implied warranties was ineffective because it was not conspicuous, and the buyer was entitled to rescission of the sales contract due to substantial defects in the new car.
[1] A disclaimer attempting to limit implied warranties of merchantability or fitness is ineffective if it is not conspicuous.
[2] A buyer of a new automobile is entitled to assume it will be mechanically new, factory furnished, operate perfectly, and be free of substantial defects, with the exceptio…
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Join FLexlaw to unlock all legal intelligencePlaintiff purchased a new Jaguar that immediately developed significant mechanical problems, requiring extensive repairs. The car was in the shop for …
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Plaintiff, Dade County Dairies, Inc., purchased a new 1970 Jaguar automobile from defendant, Orange Motors of Coral Gables, Inc. and thereafter sued for cancellation and rescission of the sales contract and other relief. Defendant’s answer denied the allegations of the amended complaint.
It appears that almost immediately after the Jaguar was delivered to plaintiff problems developed with the vehicle; the power steering was stiff; the air-conditioning leaked and rattled; the doors did not close properly; the steering column almost fell off; on two occasions the car engine stopped without apparent cause, once in heavy traffic. The car was in the shop for various repairs approximately one half of the three months it was in plaintiff’s possession.
In the final judgment for plaintiff it was found that the Jaguar failed to perform as represented by the defendant or, in the alternative, that defendant breached its warranty of merchantability. Defendant has appealed from the final judgment, as amended.
Defendant’s first point on appeal is that the parties agreed to a remedy as a result of a written warranty and rescission was not, therefore, available to plaintiff. It argued the warranty provided for a remedy agreed to by the parties, thus, plaintiff was foreclosed from rescission under § 672.719, Fla.Stat., F.S.A., which provides the parties may provide for a remedy by agreement.
The warranty provided, in separate parts, as follows:
“Subject to the condition of sale detailed on pages 6 and 7 and the limitations herein contained, BMH (USA) Inc. (as defined below) warrants to the purchaser of goods from a distributor/dealer for a period of twelve months or 12,000 miles, whichever first occurs after the date on which the goods are purchased by the license user thereof, that it will exchange or repair any part in need of replacement or repair by reason of defective material or workmanship in manufacture.”
* * * % * *
“and further
“Exclusion of other express or implied warranties and personal injuries claims; this warranty is given in lieu of all warranties, conditions and liabilities whatsoever given by BMH (USA) Inc., its servants or agents or implied by common law statute or otherwise.”
Under § 672.316(2), Fla.Stat., F.S.A., the critical requirement for language excluding or modifying implied warranties of merchantability or fitness is that it be “conspicuous”. See Entron, Inc. v. General Cablevision of Palatka, (5th Cir.) 435 F.2d 995. Any language attempting a limitation of these warranties which is not conspicuous has failed in its purpose. Zabriskie Chevrolet, Inc. v. Smith, 99 N.J.Super. 441, 240 A.2d 195 (1968). The disclaimer in the instant case was in the same color and size of type used for other provisions of the contract. See Entrón, supra.
We, therefore, hold this disclaimer ineffective because it was not “conspicuous”. See Gable v. Silver, 258 So.2d 11, 4th D.C.A., filed January 14, 1972.
As stated in the leading case of Zabriskie Chevrolet, Inc. v. Smith, supra, every buyer has the right to assume his new car, with the exception of minor adjustments, will be “mechanically new and factory furnished, operate perfectly, and be free of substantial defects” especially in view of the high powered advertising techniques of the auto industry.
After the purchase of an automobile, the same should be put in good running condition; that is the seller does not have an unlimited time for the performance of the obligation to replace and repair *321parts. The buyer of an automobile is not bound to permit the seller to tinker with the article indefinitely in the hope that it may ultimately be made to comply with the warranty. 46 Am.Jur. Sales § 732; 77 C. J.S. Sales § 340. At some point in time, if major problems continue to plague the automobile, it must become obvious to all people that a particular vehicle simply cannot be repaired or parts replaced so that the same is made free of defect. General Motors Corporation v. Ernest, 279 Ala. 299, 184 So.2d 811.
We recognize that the right to rescind does not arise from every breach of warranty or contract. Each case must be viewed carefully on its own merits to determine whether rescission is the proper remedy. One test for rescission or revocation is whether there has been a substantial impairment of value to the buyer. See Tiger Motor Company v. McMurtry, 284 Ala. 283, 224 So.2d 638 (1969) and § 672.2-608 Fla.Stat, F.S.A. In the case, sub judice, the evidence is replete on this issue. We have considered defendant’s other point on appeal and find it insufficient for reversal.
The original judgment for plaintiff required defendant to provide plaintiff with a new untitled and unused Jaguar with the same equipment which was on the original automobile purchased by plaintiff. That final judgment was vacated when the matter came on before the trial court for rehearing or for alternative relief and the court found defendant could not comply with the terms of the original judgment and, accordingly, entered judgment against the defendant for the sum of $6,500.00. Plaintiff argues the original purchase price of the Jaguar was $7,676.00 and plaintiff should be entitled to this amount upon the entry of a judgment of rescission and cancellation.
Defendant’s position is that plaintiff was not entitled to rescission and cancellation of the sales contract but if such final judgment should be affirmed the defendant was entitled to a set off or depreciation because plaintiff had use of the Jaguar for approximately 45 days and during the remainder of the time, and while the Jaguar was in defendant’s shop for repairs, defendant provided plaintiff with another automobile for transportation. This appears to comport with logic and reason and we find no error in the final judgment, as amended.
The final judgment as amended is
Affirmed.
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Rehurek v. Chrysler Credit Corp., 262 So. 2d 452 (Fla. 2d DCA 1972)…f the same type contained in the other provisions of the contract, was not in bold type and did not comply with the provisions in the statute. The Third District, in the recent case of Orange Motors of Coral Gables v. Dade Co. Dairies, Fla.App.1972, 258 So. 2d 319, said at page 320: “Under § 672.316(2), Fla.Stat, F.S.A., the critical requirement for language excluding or modifying implied warranties of merchantability or fitness is that it be ‘conspicuous,’ . . . Any lan [*455] guage attempting a limitation…
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Parsons v. Motor Homes OF Am., Inc., 465 So. 2d 1285 (Fla. 1st DCA 1985)…these circumstances, courts have ruled that buyer’s remedies were not limited to those in the contract, and that resort could be had to the remedies of the UCC.” (citations omitted). Id., at 350. In Orange Motors of Coral Gables v. Dade Co. Dairies, 258 So. 2d 319 (Fla. 3rd DCA 1972), the buyer’s problems were analogous to those of the Parsons. The evidence demonstrated that a new Jaquar was in the shop for approximately half of the three months of the buyer’s ownership. The seller argued, as does Motor Homes…
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Frank Griffin Volkswagen, Inc. v. Smith, 610 So. 2d 597 (Fla. 1st DCA 1992)…Inc. v. Cargill, Inc., 356 So. 2d 347, 350 (Fla. 2d DCA 1978). Accord Parsons v. Motor Homes of Am., Inc., 465 So. 2d 1285, 1292 (Fla. 1st DCA 1985). As the Third District observed in Orange Motors of Coral Gables, Inc. v. Dade County Dairies, Inc., 258 So. 2d 319 (Fla. 3d DCA), cert. denied, 263 So. 2d 831 (Fla.1972): After the purchase of an automobile, the same should be put in good running condition; that is the seller does not have an unlimited time for the performance of the obligation to replace and r…
Previewing 3 of 12 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Gable v. Silver, 258 So. 2d 11 (Fla. 4th DCA 1972)
- Entron, Inc. v. General Cablevision OF Palatka, 435 F.2d 995 (5th Cir. 1970)