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Grossmont and Cuyamaca College Ethical Dilemma Questions


Help me study for my Business class. I’m stuck and don’t understand.

The questions:

How would you feel if you were in Gus’ shoes?

Is Bill obligate to pay for the repairs? Why or why not?

the case:

Bill sold his three-year-old motor home to Gus, a colleague. Gus received a great price

of $10,000 in the as-is sale. When asked about the condition, Bill said, “It uses a lot of

oil, but all of these motor homes do. I’ve not had any problems with it.” A few days

later, the motor home quit on the freeway, and Gus had it towed to a repair shop. The

repairman said, “This vehicle has a badly cracked block and needs a new engine. It’ll

cost about $5,000.” Gus returned to Bill, asking him, “What are you going to do for me

here? You sold me a defective vehicle.” Bill responded, “I didn’t know anything about

the cracked block. I sold the vehicle as is, and I don’t intend to do anything about it.”


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