Newmar Corporation v. McCrary

Summary

The Nevada Supreme Court held that a motor-home purchaser could revoke acceptance against the manufacturer under the Uniform Commercial Code where the manufacturer directly participated in the sales process and made representations to the buyer, creating privity. The court upheld the award of the purchase price and incidental and consequential damages because the limited repair remedy failed of its essential purpose. It reversed the attorney-fee award, concluding that the fees were not authorized under the applicable statutes and rules.

Holdings

1. A purchaser may revoke acceptance from a manufacturer when the manufacturer interjects itself into the sales process and makes direct representations to the buyer, thereby creating sufficient privity to qualify as a seller under Nevada's UCC.
2. When an exclusive or limited repair remedy fails of its essential purpose, a purchaser who properly revokes acceptance may pursue UCC remedies, including incidental and consequential damages.
3. The district court abused its discretion by awarding attorney fees because the award was not authorized under the applicable offer-of-judgment and attorney-fee provisions.

Questions Presented

1. Whether a purchaser may revoke acceptance of a motor home from its manufacturer under Nevada's Uniform Commercial Code when the manufacturer directly participated in the sales process and made representations to the buyer.
2. Whether the purchaser may recover incidental and consequential damages when the manufacturer's limited repair remedy failed of its essential purpose.
3. Whether the district court properly awarded attorney fees under Nevada's offer-of-judgment and attorney-fee statutes.

Disposition

other