Perez is a 17-year-old high school student. The city in whic…
Perez is a 17-year-old high school student. The city in which Perez lives built a fancy course for mountain bike riding complete with hills, jumps, slopes, and gnarly terrain. Perez decided to buy a mountain bike to ride on the course. Perez went to a local bike dealer, Downhill Bikes. Perez told the salesperson at Downhill Bikes about Perez’s desire to purchase a mountain bike to ride on the local course. The salesperson indicated he was familiar with the course and could show Perez a number of mountain bikes suitable for such riding. The salesman recommended the “Anti-Gravity 3000,” a great looking mountain bike. Sandy, the salesman, knew the Anti-Gravity 3000 was on sale because it had multiple durability and quality control problems leading to parts of the bike breaking when subject to stress. But Sandy did not tell Perez about these problems. Instead, Sandy told Perez: “This is a really tough bike. Just the thing for jumps and hills.” Perez bought the bike – paying $1,000 down and promising to pay an additional $1,000 in two months. This arrangement was documented in an ordinary store receipt for the $1,000 down payment and short document, signed by Perez, indicating when Perez was to pay the balance. The bike was on sale and had a tag saying, “No returns or exchanges on sale price bikes.” The next day, Perez took the bike to the park and started riding the course. At the bottom of the first large jump, the front fork, the back wheel’s spokes, and the lower bar of the main frame all failed. The bike literally fell apart on impact. By some miracle, Perez was uninjured but he is determined to get a refund on the purchase price. Downhill Bikes refused to give Perez a refund or an exchange because (1) of the bike’s tag and (2) the bike is no longer ridable. Downhill also demands payment of the unpaid $1,000. Discuss.