Victor advertised a second-hand motorcycle in his sales showroom: ‘BMW. 2010. Excellent condition. 10,000 km. One previous owner: Dh62,000 only. Suitable for racing.’ Percy went to see it. Victor said that ‘It is in fine condition but have it independently examined if you wish’. Percy said that that would not be necessary because he was content to rely on Victor’s fine reputation. He then bought the motorcycle for Dh 62,000.
A year later, he discovered that the motorcycle had had three previous owners, had done 60,000 km and was worth only Dh20,000 at the time of the sale. Further, it proved to be unsuitable for racing.
Advise Percy.
