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QUESTION

Adam Smith, a resident of New York State, wanted to sell his car and decided to do so by placing an advertisement in the local newspaper.

Adam Smith, a resident of New York State, wanted to sell his car and decided to do so by placing an advertisement in the local newspaper. In the advertisement he stated the car was in “good condition” and “ran like a dream”. In the advertisement he wrote that he was asking for $5,000 but that the price was negotiable and listed his phone number so potential buyers could call him and arrange to see the car. He received a call from James Olberrman, who wanted to see the car. James arranged a time with Adam to see and test-drive the car. During the test drive, James noticed that there was a funny sound when he applied the breaks and asked Adam about the breaks. Adam said that he had never had any problems with the breaks and told James that the car was fine and the breaks would not need to be replaced for another 25,000 miles or so. James decided to buy the car without having the breaks checked by a mechanic before buying the car. He paid Adam the $5,000 cash, Adam wrote James a receipt for the $5,000 and James then drove the car away. After driving the car for about seven days, the breaks failed to work when James tried to stop at a red light. When James was not able to stop at the red light his car hit another car. Both James and the driver of the other car were injured during the accident. .Question II—Discuss whether James and the other driver would be able to sue Adam for negligence. Be sure to discuss any defenses that Adam may have.

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