Nigro v. Lee
882 N.Y.S.2d 346, 63 A.D.3d 1490 (2009)
Rule of Law:
A seller's generalized, subjective statement of opinion about a product's quality, such as calling a used car "gorgeous," constitutes non-actionable puffery and does not create an express warranty. Furthermore, a buyer's reliance on a seller's representations is not justifiable for a fraud claim if the buyer failed to use available means to investigate the truth of those representations.
Facts:
- In 2006, Maxwell Lee, on behalf of his mother Alice Aizhen Lee, listed a 1995 Mercedes Benz for sale on an eBay auction.
- The Lees resided in Nevada, while the potential buyer, the plaintiff, resided in New York.
- The eBay advertisement described the car as "gorgeous," disclosed three minor blemishes, and stated the vehicle was being sold "as it is."
- The advertisement invited prospective buyers to contact the sellers with questions.
- The plaintiff purchased the vehicle through the auction without hiring anyone to inspect it or ordering a vehicle history report.
- Upon delivery on July 30, 2006, the plaintiff had the car inspected and discovered it had prior accident damage, rusted parts, stained upholstery, and required thousands of dollars in repairs.
- After the plaintiff expressed dissatisfaction, the Lees refunded a portion of the purchase price.
Procedural Posture:
- Plaintiff commenced an action against defendants in the Supreme Court of Albany County, a trial court, to rescind the contract or recover damages for fraudulent misrepresentation.
- Defendants moved for summary judgment to dismiss the complaint.
- Plaintiff cross-moved for summary judgment.
- The trial court granted defendants' motion for summary judgment, dismissing the complaint, and denied plaintiff's cross-motion.
- Plaintiff, as appellant, appealed the trial court's order to the Supreme Court, Appellate Division, an intermediate appellate court, with defendants as appellees.
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Issue:
Does a seller's characterization of a used car as "gorgeous" in an online auction create an express warranty, and can the buyer's reliance on such a statement be considered justifiable for a fraud claim if the buyer forgoes available means of inspection?
Opinions:
Majority - Peters, J.P.
No. A seller's characterization of a used car as 'gorgeous' is mere 'puffery' and does not create an express warranty, and a buyer's reliance on such a statement is not justifiable for a fraud claim when they fail to conduct a reasonable pre-purchase investigation. The court reasoned that under UCC § 2-313, a seller's opinion or commendation of goods does not create an express warranty. The term 'gorgeous' is a subjective statement of opinion, not an objective affirmation of fact about the car's mechanical condition, and should not have been relied upon. Regarding the fraud claim, the court held that reliance is not justifiable if the buyer has the means to discover the truth through ordinary diligence but fails to do so. Here, the plaintiff could have asked questions, obtained a vehicle history report, or hired a mechanic in Nevada to inspect the car before purchasing. Since all the alleged defects were discoverable through such routine investigation, his failure to take these steps makes his reliance unreasonable and defeats his fraud claim. The fact that the vehicle was in another state does not excuse the buyer from this duty of reasonable diligence.
Analysis:
This decision affirms the traditional contract law principles of "puffery" and "caveat emptor" (buyer beware) and applies them squarely to modern e-commerce transactions. It clarifies that the burden remains on the buyer to conduct due diligence, even in long-distance online sales. The ruling serves as a caution to online purchasers that they cannot later claim fraud based on subjective seller descriptions if they neglect available and reasonable means of pre-purchase inspection. This case solidifies that geographic distance does not relieve a buyer of the duty to investigate and that failing to do so undermines the 'justifiable reliance' element essential for a fraud claim.
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