Oddo v. General Motors Corp.
22 UCC Rep. Serv. 1147 (N.Y.Sup. 1977)
- Oddo bought a new car, drove
it off the lot, and almost immediately it burst into flames! He had the
smoldering car towed back to the dealer and demanded a refund.
- The dealer argued that the car
could be fixed and therefore their sole obligation was to repair the car
in accordance with the warranty. They repaired the car, but Oddo refused
to accept it.
- Instead, Oddo sued for a
refund (aka rescission).
- The Court found for Oddo and
said that he has a right to rescission.
- The Court found that Oddo
had a reasonable expectation to have a safe car. The fire was a breach
of contract based on merchantability,
and therefore rescission is
- Basically, when a seller
sells something, there is an implicit guarantee that the thing is
useable (aka a guarantee of merchantability). If it isn't, then the contract is considered void.
- If General Motors had offered
to give Oddo a completely new car instead, that would probably have been
acceptable as a conforming delivery
under UCC §2-508(1).