Legal Updates

‎‎‎‎‎‎‎‎ Disclosure obligation on car traders may not be conditioned

February 17, 2018
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A purchaser of a used vehicle discovered an engine problem.  The trader contended to have given data on the issue, but the trader did not present a "disclosure form" at the transaction.

The Court accepted the claim and held that failure to duly present the purchaser with a "disclosure form" constitutes, by itself, a violation of the provisions of the law, and the trader is held as having concealed information from the purchaser and is precluded from raising any contention regarding information disclosed to the purchaser about the vehicle. The duty of disclosure applicable to car traders may not be conditioned, regardless of the reason for which the information was not given to the purchaser.  The trader need verify the correctness of the details of the vehicle sold by it and failure to disclose full and correct information about the vehicle will establish responsibility for the trader to compensate the purchaser for this.