Many used cars in the United States are damaged. These damages range from minor body damage to serious frame damage and millions of these cars sold throughout the country each year. Selling damaged cars is a very profitable business for car dealers. Is the car dealer responsible for selling these cars and what is his liability?
The areas of law that govern this liability include the following: Consumer Fraud, Fraud, Breach of Warranty and others.
Fraud
It is very common among car dealers not to disclose the fact that the car was previously damaged. The reason for this fraud is basically the fact that the dealers know that the consumer will change his/her decision to purchase the vehicle. However the law requires the dealer to disclose all the information and truthfully answer to all the questions of the consumer.
Consumer Fraud
The car dealer bears liability under the Consumer Fraud Act if he knew some information about the vehicle, but failed to disclose it to the car buyer. The consumer should prove that the dealer did it intentionally.
The consumer can also file a lawsuit against the dealer for so-called affirmative misrepresentation of fact. For example, the dealer may tell you that the car was not in an accident, but later you discover that it actually was. This is considered to be misrepresentation, even if the dealer didn’t know about it. The dealer is required to give accurate information to the consumer.
Breach of Warranty
The car dealer bears liability if he falsely described the car as no accident or no damage and it served as basis for the purchase. The dealer is liable if the use, value and/or safety is affected the. The liability is very complex and complicated and may be affected by many other factors such as the existence of written warranties, service contracts and “as is” disclaimers.
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