This section contains the nature of the case and procedural background.

Morgan (D) purchased a new car from a Lincoln Mercury dealer. D financed the car through Ford Motor Credit (P). D drove the car for 11,500 miles over eighteen months and experienced a number of problems with the quality. The worst complaint was that if left unattended, the transmission would shift from park to reverse. D started to have financial difficulties and missed their November and December payments. D then hid the car and continued to do so two months after the court issued a surrender order. The car was eventually surrendered but it was a total wreck. P sought recovery of $2,628.67 and D counterclaimed for fraud and deceit, violation of unfair and deceptive trade practices and breach of express and implied warranties of merchantability and fitness for a particular purpose. The jury found that the dealer had knowingly made false representations to D. The trial court heard the other complaints and found that D was not entitled to damages on the other two counts. The court entered judgment for D on P's complaint and for D on each of the counterclaims. D was not entitled to affirmative recovery against P. P appealed.

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