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Just posting to show support for Dooma - read about it on Autoblog and definitely made my boring Sunday less boring!
I'm a lawyer in Edmonton, Canada. Unfortunately, I can't comment on the American law that would be applicable, and my first year Contracts course was almost eight years ago now. That said, on a quick glance of the facts, I'd say there is a very good case to be argued.
But I'd love to litigate this file if Dooma was local, and I'd do it for free just to help out a fellow car guy.
Good luck with everything, hope it works out! Will be following the thread in great interest.
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