City Dodge, Inc. v. Gardner

Gardner (plaintiff) purchased a used automobile from City Dodge, Inc. (the dealer) (defendant). Gardner alleged that he had received a promise from the dealer that the car had never been wrecked. The dealer denied that it made this representation. The sales agreement contained a disclaimer provision, which stated that no other agreement would be recognized. The agreement also contained an as-is provision. After the purchase, Gardner learned that the car had been wrecked, and he returned the car to the dealer. Gardner then unilaterally rescinded the sales agreement and filed a suit against the dealer, alleging fraud and deceit. Section 2-202 of the Uniform Commercial Code (UCC), which had been incorporated into the Georgia code, prevented buyers from introducing evidence of additional promises and offers if a contract expressed that it was the full and complete agreement of the parties. Section 2-202 was intended to protect sellers from false claims of warranties. However, under Georgia common law, buyers had traditionally been allowed to allege misrepresentation, and if successful, they could either affirm the contract and sue for breach or rescind the contract and sue for alleged fraud and deceit. At trial, a judge allowed Gardner to introduce parol evidence of the alleged misrepresentation. A jury awarded a verdict and judgment for Gardner. The court of appeals affirmed. The dealer appealed, contending that Georgia’s adoption of the UCC precluded Gardner’s suit for fraud and deceit.