Ismael v. Goodman Toyota
North Carolina Court of Appeals
417 S.E.2d 290 (1992)
Khalid Ismael (plaintiff) bought a used Ford Tempo as is from Goodman Toyota (defendant) for $5,054, also paying an extra $695 for a 24-month, 24,000-mile Vehicle Service Agreement; the car had serious problems from the start, and although Goodman made free repair attempts, other Ford dealers eventually found engine sludge made the car unrepairable. Ismael sued for breach of the implied warranty of merchantability, but Goodman argued the as-is sale disclaimed all implied warranties under the UCC, and the trial court agreed and ruled for Goodman.
Whether, under the Magnuson-Moss Warranty Act, a seller who provides a purchaser with a written warranty or service contract may disclaim the implied warranty of merchantability.