General Motors Products of Canada v. Kravitz

General Motors Products of Canada v. Kravitz

Manufacturer who sells a new product to a dealer is liable under the Civil Code warranty against latent defects to any subsequent purchaser; no-warranty clauses in dealer contracts and conventional manufacturer warranties cannot exclude or limit that statutory warranty as against a non-professional buyer; the warranty follows the thing to the sub-purchaser and permits direct action for cancellation (reimbursement of the price paid to the dealer subject to return) and damages, and manufacturer is jointly and severally liable with dealer in commercial transactions.

Citation
[1979] 1 SCR 790
Parties
Appellant (manufacturer): General Motors Products of Canada Limited; Respondent (buyer): Leo Kravitz; Co Defendant (dealer): Plamondon Chevrolet-Oldsmobile Ltée
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
23 January 1979
Procedural Posture
Appeal / Supreme Court of Canada Final Judgment on Appeal From Court of Appeal for Quebec
Outcome
Appeal dismissed
Legal Topics
Latent Defects, Legal Warranty (redhibition), No Warranty Clause, Conventional Warranty, Manufacturer Liability, Sub Purchaser Rights, Reimbursement and Damages
Source Language
English
Sale Contract Tort Consumer Protection Civil Law Latent Defects Legal Warranty (redhibition) No Warranty Clause +4 more

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Parties

General Motors Products of Canada Limited

Appellant (manufacturer)

Leo Kravitz

Respondent (buyer)

Plamondon Chevrolet-Oldsmobile Ltée

Co Defendant (dealer)

Procedural Posture

Appeal / Supreme Court of Canada Final Judgment on Appeal From Court of Appeal for Quebec

Legal Issues

  1. 1 Is a manufacturer liable to a subsequent buyer for latent defects in a new vehicle sold through an authorized dealer?
  2. 2 Can a no-warranty clause in the dealer's contract with the buyer exclude the statutory warranty of the manufacturer or dealer?
  3. 3 Can a manufacturer's conventional warranty limit or exclude statutory warranty obligations?

Ratio Decidendi

Manufacturer who sells a new product to a dealer is liable under the Civil Code warranty against latent defects to any subsequent purchaser; no-warranty clauses in dealer contracts and conventional manufacturer warranties cannot exclude or limit that statutory warranty as against a non-professional buyer; the warranty follows the thing to the sub-purchaser and permits direct action for cancellation (reimbursement of the price paid to the dealer subject to return) and damages, and manufacturer is jointly and severally liable with dealer in commercial transactions.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Judgments below affirmed