Business Law: Shoop V. Daimler Chrysler

Case 17.1 Shoop v. DaimlerChrysler Corp (p 348)

The case of Shoop v. DaimlerChrysler took place during 2002 in Chicago, Illinois. In April 2002 Darrell Shoop purchased a 2002 Dodge Dakota truck for $28,000 from Dempsey Dodge. Almost immediately Shoop experienced many problems with the truck including; the engine, suspension, steering, transmission, and other components that required 12 repairs in the first 18 months. After having the truck for 3 years (driving 39,000 miles) Shoop accepted $16,500 for the trade in value of the truck as part of a purchase for a new vehicle. A comparable vehicle would have a trade in value of $14,425 and a resale value of $17,225. Shoop filed a suit against DaimlerChrysler alleging a breach of implied warranty of merchantability. Daimler defended with an argument that Shoop’s sale of the truck was evidence of merchantability. The court issued a summary judgment in DaimlerChrysler’s favor. Shoop then appealed to a state intermediate appellate court. Under Section 2-314(c)(2) of the UCC, a product breaches the implied warranty of merchantability if it is not fit for the ordinary purposes for which such goods are used. In this case the plaintiff specifically eliminated any abnormal uses and secondary causes as the source of the defects. Shoop amended that the problems with the truck began almost immediately after he took possession. Shoop’s witness Thomas Walters test drove the Dakota and found many problems that were described by Shoop. The state appellate court concluded “a genuine issue of material fact existed as to whether (DaimlerChrysler) breached the implied warranty of merchantability.” The court reversed the lower court’s summary judgment and remanded the case for trial.