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Kenai Chrysler Center Case Analysis

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Kenai Chrysler Center, Inc. v. Denison
167 P. 3d 1240
Alaska Supreme Court 2007

In Kenai Chrysler Center, Inc v. Denison, Dorothy and Michael Denison brought suit against the Kenai Chrysler Center to void the contract of a car that was bought by their son.   Their son is developmentally disabled, and his parents are David’s legal guardians.   David lives on his own, but his parents control his finances.   David decided that he wanted to buy a car from Kenai Chrysler.   David’s first attempt was when he called his father from the Kenai dealership asking him to cosign on a used vehicle.   David’s father refused to cosign.   The next day David returned to buy a car, but this time he was able to finance a new car without the need of a cosigner, only a down payment.   The dealership was able to give David credit for trading his 94 Pontiac.   He financed a new Dodge Neon with a $2000 rebate, for $12,851.77 @ 11.99 APR for 5 years.   Through this deal, David only needed to put down $500 for a down payment.   David called mom for the down payment, but his mother refused.   David was able to withdraw the money with his debit card and purchased the car.
A few days later, mom brought David back to inform management that David was under legal guardianship and that he had no legal authority to enter in the contract to buy the Neon.   David’s mother showed management guardianship papers, however management refused to take the car back.   David’s mother insisted the contract was void, but David was still given the keys.   She then went on to contact the General Manager of Kenai, and he even agreed that David was bound to the contract.
David eventually damaged the Dodge in a one car accident.   His parents were then able to return the Dodge back to the dealership.   David went to the dealership to retrieve his Pontiac, but was told that he couldn’t have that back, but could take the Dodge Neon.   Finally, David’s parents were able to return the Dodge at one last attempt.   At this point...

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