On August 22, O'Neil purchased a used diesel tractortrailer combination from International Harvester. O'Neil claimed that International Harvester's salesman had told him that the truck had recently been overhauled and that it would be suitable for hauling logs in the mountains.
The written installment contract signed by the parties provided that the truck was sold ‘‘AS IS WITHOUT WARRANTY OF ANY CHARACTER express or implied.'' O'Neil admitted that he had read the disclaimer clause but claimed that he understood it to mean that the tractor-trailer would be in the condition that International Harvester's salesman had promised.
O'Neil paid the $1,700 down payment, but he failed to make any of the monthly payments. He claimed that he refused to pay because his employee had many problems with the truck when he took it to the mountains. Delays resulting from those problems, O'Neil argued, had caused him to lose his permit to cut firewood and, therefore, the accompanying business.
An International Harvester representative agreed to pay for one-half of the cost of certain repairs, but the several attempts made to fix the truck were unsuccessful. O'Neil then tried to return the truck and to rescind the sale, but International Harvester refused to cooperate. Decision?