Case Problem:
A dealer sold a new car to Raymond Smith. The sales contract contained language expressly disclaiming liability for personal injuries caused as a result of defects in the car and limiting the remedy for breach of warranty to repair or replacement of the defective part. One month after purchasing the auto, Smith was seriously injured when the car veered off the road and into a ditch as a result of a defect in the steering mechanism of the car.
- If Smith sues the dealer for breach of warranty and the dealer defends by relying on the contract disclaimer, what would be the result and why?
Please prepare a written reply in essay form, citing information on warranty and UCC Article 2.