Grossmont and Cuyamaca College Ethical Dilemma Questions
Help me study for my Business class. I’m stuck and don’t understand.
How would you feel if you were in Gus’ shoes?
Is Bill obligate to pay for the repairs? Why or why not?
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.”