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Dirico v. Fuqua Chrysler-Plymouth, Inc.

Citations: 562 N.E.2d 756; 13 U.C.C. Rep. Serv. 2d (West) 731; 1990 Ind. App. LEXIS 1495; 1990 WL 180580Docket: 25A03-8910-CV-462

Court: Indiana Court of Appeals; November 19, 1990; Indiana; State Appellate Court

Narrative Opinion Summary

This case centers on a breach of express warranty claim involving a used 1978 Chevrolet Impala, sold by an individual to a car dealership. The dealership faced legal action from a retail buyer after it was revealed that the vehicle's actual mileage exceeded the reading on the odometer at the time of purchase. The dealership, having been held liable under federal law, sought damages from the seller, arguing that the odometer statement constituted an express warranty. The trial court ruled in favor of the dealership, but the seller appealed. Under Indiana Commercial Code IC XX-X-X-XXX, an express warranty arises from affirmations of fact made by the seller. The appellate court found that the odometer statement, which asserted the mileage 'to the best of my knowledge,' did not constitute a factual affirmation sufficient to create an express warranty. The court emphasized the absence of any false claims or bad faith by the seller, ultimately reversing the trial court's decision and instructing judgment for the defendant. Justices Staton and Baker concurred, highlighting the legal insufficiency of the warranty claim based on the evidence presented.

Legal Issues Addressed

Affirmation of Fact in Express Warranty Claims

Application: The case addressed whether the odometer statement qualified as an affirmation of fact. The court concluded that stating mileage 'to the best of my knowledge' did not constitute a factual affirmation necessary for an express warranty.

Reasoning: The first certification merely reflects the seller's belief regarding the odometer's accuracy, stating 'to the best of my knowledge,' and does not assert the correctness of the mileage as a fact or promise.

Breach of Express Warranty under Indiana Commercial Code IC XX-X-X-XXX

Application: The court examined whether an odometer statement from the seller constituted an express warranty, ultimately finding that the seller had not explicitly warranted the car's mileage, thus no breach occurred.

Reasoning: Fuqua's warranty claim relies solely on the first certification, which is legally insufficient to establish an express warranty.

Good Faith in Sales Transactions

Application: The judgment emphasized the seller's good faith in the transaction, noting the absence of any fraudulent intent or false certification regarding the vehicle's mileage.

Reasoning: Dirico's sale of the car was conducted in good faith, leading to the conclusion that no express warranty regarding actual mileage exists.