Legal Question in Business Law in Utah

Purchased A Deck Biz With Warranty Issues

I recently purchased an existing deck business in Utah. The Sales Contract states ''Any warranty work performed by previous owner must be covered for two years from date of closing. Seller is responsible for all warranties costing over $100.''

I got 7 warranty calls within the first week. The seller lives in CA and says it is our responsibility to fix the problems at our cost. He says he is only responsible for material costs over $100. On one of the jobs, 4 posts need to be replaced because of poor installation by him 1 year ago. The posts costs $12.00 each but will take 2 employees at least 2 full days to replace.

We make $1100/mo payments to them. Is it legal for us to deduct the full repair (including labor) costs from his check if he refuses to fix the problems? We paid a lot of money for the name and it is being tarnished by the day.

What is our recourse?

Thank you.


Asked on 7/20/07, 2:53 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Purchased A Deck Biz With Warranty Issues

A specific answer cannot be made without a review of the purchase/sale documents. In general it sounds like the Seller is responsible for any warranty work over $100, which should include labor and materials. You may call for a free consultation.

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Answered on 7/20/07, 4:22 pm


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