Spotlight on Revocation of Acceptance—Remedies of the Buyer. L.V., Inc., sells recreational vehicles (RVs) in Las Vegas, Nevada, as Wheeleron Las Vegas RV. In September 1997, Wheeleron sold a Santara RV made by Coachmen Recreational Vehicle Co. to Arthur and Rose Waddinson. The Waddinson's hoped to spend two or three years driving around the country, but almost immediately—and repeatedly—they experienced problems with the RV. Its entry door popped open. Its cooling and heating systems did not work properly. Its batteries did not maintain a charge. Most significantly, its engine overheated when ascending a moderate grade. The Waddinson's brought it to Wheeleron service department for repairs. Over the next year and a half, the RV spent more than seven months at Wheeleron. In March 1999, the Waddinson's filed a complaint in a Nevada state court against the dealer to revoke their acceptance of the RV. What are the requirements for a buyer’s revocation of acceptance? Were the requirements met in this case? In whose favor should the court rule? Why?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
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Spotlight on Revocation of Acceptance—Remedies of the Buyer. L.V., Inc., sells recreational vehicles (RVs) in Las Vegas, Nevada, as Wheeleron Las Vegas RV. In September 1997, Wheeleron sold a Santara RV made by Coachmen Recreational Vehicle Co. to Arthur and Rose Waddinson. The Waddinson's hoped to spend two or three years driving around the country, but almost immediately—and repeatedly—they experienced problems with the RV. Its entry door popped open. Its cooling and heating systems did not work properly. Its batteries did not maintain a charge. Most significantly, its engine overheated when ascending a moderate grade. The Waddinson's brought it to Wheeleron service department for repairs. Over the next year and a half, the RV spent more than seven months at Wheeleron. In March 1999, the Waddinson's filed a complaint in a Nevada state court against the dealer to revoke their acceptance of the RV. What are the requirements for a buyer’s revocation of acceptance? Were the requirements met in this case? In whose favor should the court rule? Why?

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