What to do if I sold a car on-liney “as is” and a car dealer in another state won the auction but is now threatening to sue me or return the car?

He had 10 days to ask questions and never asked anything. The car really seemed to run good but I also encouraged inspections in my auction. I believe the car is either fine or he has damaged it by running too hard. I know if I send him money he will ask for more and I don’t want the car back nor trust it.

Asked on August 16, 2012 under Business Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

When a car is sold as is, without any guaranty or warranty, the seller is generally only liable if he or she knew of material (important) defects and concealed them or knowingly failed to disclose them--that would constitute fraud, which could provide grounds to rescind the transaction or seek monetary compensation. If you did not know of any problems, you should not be liable--which may not, unfortunately, stop this person from attempting to sue you. If he does, you should have a good defense, but he may go this route to try to bully you into taking the car back or paying him money, to avoid the cost, time, and distraction of litigation.


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