Discussion Topic:

You are negotiating the purchase of a car from ACME Car Sales. The most important part of this to you

is that it is a red car, and you finalize a deal on the shade of red you want this car to be. Your agent, Fred

Frank states that he will write up the contract and you are to show up tomorrow to finalize the

transaction. To show intent on your part, you need to put a down payment of $1,000.00 today before you

leave. You do so and a receipt is given to you for a red car and you leave.

The next day you return and all the paperwork is before you; literally mounds of paperwork that boggles

your mind. Page after page you place your signature in each required area. With each new page, Frank is

tells you what it is and that you do not need to read it as it us just a "legal formality". One bundle stapled

together is ten pages long, and he indicates where to sign it on the last page, not showing you the other

pages.

Finally, you are done and he gives you the keys to your new car. Going outside you look for your red car

and Frank points out your new car, a bright yellow car! You angrily tell him that it is not the car you

wanted, but Frank responds by saying you signed the contract for a yellow car.

Looking over the paperwork, you discover in the ten page bundle the words "yellow' handwritten on the

outer margin overruling the word 'red' throughout the document. You state that "...this is an invalid

contract and as you are a Business Law student at CCC, this is a violation of the parol evidence

rule..."!!! His response is that, again, you signed the document accepting the contract of the car, which

included the color yellow clearly handwritten in the margin AND he was also a student in Business Law

at CCC and parol evidence is not admissible in a court.

Questions:

1. Is this a valid contract? Explain.

2. Does the handwritten 'yellow' supersede the typed word 'red'? Explain.

3. Was there any indication of fraud on the part of Frank? Explain.

4. Is this an example of the parol evidence rule? Explain.

5. Do you have a valid complaint against ACME Car Sales? Explain.