Problem
Andy wants to start his own mobile dog-washing business. He goes to 'Trailers Galore' to see what kinds of trailers are available. There, he speaks to the manager of the business, Mei.
'I'm looking to get a trailer that I can fix up for my new business. I'll be using it for washing customers' dogs,' Andy explains.
'Well, this TrailBlazer right here will be fine for that kind of thing,' Mei replies. 'It's an excellent trailer - our best value model.' She shows Andy an enclosed trailer available for $900.
'It looks perfect. The dogs will love it!' exclaims Andy. 'I'll take it.'
Mei presents Andy with a long document and asks him to sign at the bottom to complete the sale. Andy doesn't bother to read the document. He signs it, pays, and takes the trailer home to begin fitting it out with all of his dog-washing equipment.
After Andy's first week of dog-washing, he notices that there is water damage at the bottom of the trailer. It seems that the water from the dog-washing has been seeping into the frame of the trailer, and is causing it to rot. He calls Mei to complain.
'There's no point complaining to me. Check out the contract - we're not liable,' says Mei.
Andy looks at his copy of the sale contract. On the final page there is a term stating:
'Trailers Galore is not liable for any breach of warranty under this agreement.'
Andy comes to you for legal advice. He says that the TrailBlazer is not excellent, and that this cannot be Trailer Galore's best value model. He wants to sue Trailers Galore for breach of contract, for the trailer not being suitable for dog-washing because it is not waterproof.
A. Is it a term of the contract that the TrailBlazer is an excellent trailer, and/or that it is Trailers Galore's best value model? Why or why not?
B. Is it a term of the contract that the trailer is waterproof? Why or why not?
C. Is the parol evidence rule relevant here? Why or why not? If it is relevant, does an exception apply?
D. If it is a term of the contract that the trailer is waterproof, what kind of term is it?
E. Will the exclusion clause prevent Andy from suing Trailers Galore for the water damage? Was it properly incorporated in the contract? How will it be interpreted?
F. Would you advise Andy to pursue an action for breach of contract against Trailers Galore? Why or why not?