CAR DEALERSHIP VEHICLE NON-DISCLOSURE OF MECHANICAL OR STRUCTURAL DEFECT
If a fact about the vehicle that affects the structural, mechanical, or performance of the vehicle could reasonably be expected to influence the decision of a reasonable purchaser to buy the vehicle the registered motor vehicle dealer must ensure that the information is disclosed in the contract.
Consumer complaints have risen and range anywhere from complaints of non-working transmissions, gasket leaks, faulty alternator or non-disclose of accidents or write-offs.
Salespeople and dealerships are required by law to provide these disclosures related to the past use, history and condition of the vehicle.
This disclosure must include written statements on the purchase and sale contract about any of the following conditions.
- The make, model, trim level and model year of the vehicle.
- If the vehicle has been used as a taxi, limousine, police or emergency vehicle. If the vehicle has been leased (rented) on a daily basis and has not been subsequently owned by someone other than a dealer.
- If any collision or incident damage to the vehicle was greater than $3,000 (and the total cost of repair if known by the dealer).
- If the vehicle has been classified under the Highway Traffic Act as irreparable, salvage or rebuilt, or was declared a total loss by an insurer.
- If the vehicle has two or more adjacent panels that are not bumper panels that have been replaced.
- If the manufacturer’s warranty on the vehicle has been canceled.
- If the vehicle has sustained any damage caused by fire.
- If the vehicle has sustained any damage caused by immersion in a liquid that has penetrated to the level of at least the interior floorboards.
- If there has been structural damage or if the vehicle has had repairs, replacements or alterations to the structure of the vehicle.
- If the vehicle has an anti-lock braking system that is not operational.
- If any of the vehicle’s airbags are missing or not operational.
- If the vehicle requires repair to any of the following:
- Engine, transmission or power train.
- Subframe or suspension.
- Computer equipment.
- Electrical system.
- Fuel operation system.
- Air conditioning.
A statement of any other fact that could be expected to influence the decision of a reasonable buyer or lessee to purchase or lease the vehicle should be disclosed in the terms and conditions of the purchase and sale contract.
In a recent matter, the car dealership settled and refunded the cost of the vehicle together with legal fees.
Disclaimer: past results are not necessarily indicative of future results and that the amount recovered and other litigation outcomes will vary according to the facts in individual cases.