Even though the buyer of the RV described it as a “jalopy,” the 7th Circuit of Appeals in Indiana found the warranty was built solidly enough to prevent the manufacturer from having to cover the repairs.
This story by Marilyn Odendahl originally appeared on TheIndianaLawyer.com.
Nicholas Knopick bought a $414,583 Jayco RV at a dealership in Iowa in July 2012, but he signed the purchase documents and took title on behalf of Montana Freedom Rider, a company he controlled.
Almost immediately after the sale was complete, Knopick began having trouble with the unit. He said it leaked, smelled of sewage and the features were poorly installed.
Although Jayco repaired the RV twice at its manufacturing facility in Indiana, Knopick was not satisfied and sued the company.
District Court Judge Jon DeGuilio ruled Knopick had no rights under the warranty because the RV was actually purchased by a business. The language in the two-year limited manufacturer’s warranty specifically states it does not cover any RV used for commercial purposes or purchased in a business’s name.
Under Knopick’s waiver argument, the appellate court said, merchants who go beyond their contractual duties would risk obliging themselves to perform new and broader duties. This could discourage amicable resolutions to minor commercial disputes.
“In business generally and in consumer markets, a contracting party’s willingness to go beyond her strictly enforceable legal obligations is a key commercial lubricant,” Judge David Hamilton wrote. “It facilitates trust, long-term relationships, repeat customers, and referrals.”