Question

ABC Motors ordinarily deals in used cars and does some amount of repair work. Robby entrusted his automobile to ABC Motors to have the oil changed and get new brakes. The car was parked in the lot along with other cars, some of which were for sale. The manager of ABC Motors accidentally sold the car to Connie because she saw it and took it upon herself to offer a good price. The manager was attempting to increase the shop's profit margin. Connie had no idea that the car did not belong to ABC Motors. When Robby went to pick up the car, he was very upset that it was gone. The manager told Robby that he was very sorry, but that he was not negligent and only made an honest mistake. According to the manager, Robby accepted the risk of this type of loss, and his only recourse was against Connie. Which of the following is true regarding the manager's statement that Robby's only recourse is against Connie?
a. The manager is correct.
b. The manager is correct only if Connie's deal was for less than 10% of the fair market value of the car.
c. The manager is incorrect only if Robby has a writing signed by a representative of the repair shop guaranteeing the safety of the car.
d. Because the sale to Connie was an accident, the manager is correct only if Connie can be found and served with process.
e. The manager is incorrect.

Answer 1

Answer: e. The manager is incorrect.

Explanation:

Based on the information given in the question, the statement that's true regarding the manager's statement that Robby's only recourse is against Connie is that the manager is incorrect.

It should be noted that Connie wasn't aware that the car didn't belong to ABC motors thereby Robby's only recourse is not against Connie. The manager should be able to protect the vehicles brought to the company. In this case, the company is liable and Robby can take up a case against them.

Therefore, the correct option is E