Legal Updates

‎‎‎‎‎‎‎‎Failure to produce a due diligence form in a used vehicle transaction is a misrepresentation

July 13, 2017
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A purchaser of a used car from a car dealer was forced to repair the motor shortly thereafter and ‎contended that certain details were not disclosed to her. The purchaser sold the vehicle at a ‎significantly lower price than the purchase price and sued the dealer.‎

The Court held that misrepresentation at the time of entry of a contract is also the non-disclosure of ‎facts which, under law, custom or circumstances, should have been disclosed. In the sale of a ‎used vehicle by a car dealer there is a duty under law to provide a due diligence disclosure form, ‎and therefore the non-producing of a form constitutes a misrepresentation and also prevents the ‎dealer from raising any defense relating to oral disclosures allegedly given as to the condition of the ‎vehicle. Thus, the Court held that the merchant is to compensate the purchaser.‎