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Ismael v. Goodman Toyota

North Carolina Court of Appeals
417 S.E.2d 290 (1992)


Khalid Ismael (plaintiff) purchased a used Ford Tempo from Goodman Toyota (Goodman) (defendant) for $5,054. Ismael bought the car as is. However, Ismael also paid an extra $695 for a Vehicle Service Agreement that covered repairs to the car for 24 months or 24,000 miles after purchase. Ismael immediately found that the car had many serious problems. Ismael returned it to Goodman several times for repair, and Goodman did not charge Ismael. However, Goodman was unable to resolve the car’s malfunctions. Ismael finally took the car to other Ford dealers, and learned that sludge in the car’s engine made it unrepairable. Ismael sued Goodman, alleging that Goodman had violated its implied warranty of merchantability when it sold him an undrivable car. Goodman argued that because the car was sold as is, pursuant to the Uniform Commercial Code (UCC), Goodman effectively disclaimed all implied warranties. The trial court ruled in favor of Goodman. On appeal, Ismael argued that he was entitled to relief because Goodman had failed to comply with the Magnuson-Moss Warranty Act.

Rule of Law


Holding and Reasoning (Wells, J.)

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