Mary goes to a used car dealership to buy a car.  The used car salesperson tells Mary the car is in fantastic condition.

1.  Mary goes to a used car dealership to buy a car.  The used car salesperson tells Mary the car is in fantastic condition.  For various reasons Mary has no confidence in what she is being told but it is more of a “gut feeling” than anything she can point to.  Mary buys the car for $10,000 and drives it off the lot.  One week later the car develops major problems and keeps stalling out and Mary can not drive it safely.  She takes it to a car mechanic and is told it will cost $3,000. to fix.  Does Mary have any recourse over the car dealership? Explain your answer fully exploring all issues.

2.

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Tina is friends with Tony and Ethel and one night they decide to start a new business.  Tina likes Tony but is not sure of Ethel because she is a multi-millionaire and acts “snooty” and acts better than everyone else.  If you were advising Tina about entering into a business with Tony and Ethel what would you advise?  In the discussion talk about both partnership and limited partnerships.  What if Ethel goes into the business relationship as a limited partner; does that change your advice?  Would you advise Tina to enter as a partner or limited partner and why? I have left the type of business blank so if it helps your analysis feel free to make a business up.  Explain your answer fully exploring all issues.

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