Is it fraud if I bought a car under warranty 3 months ago but when I went to trade it in today I found out it was bought at auction and had frame damage that was never disclosed info to me?

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Is it fraud if I bought a car under warranty 3 months ago but when I went to trade it in today I found out it was bought at auction and had frame damage that was never disclosed info to me?

Asked on January 27, 2013 under General Practice, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country the seller of an item is required to disclose to all potential buyers all that is known that may materially affect the desirability or price paid of an item. If the seller of the car knew that the car had frame damage before the sale to you and did not disclose the material fact to you, such is concealment a form of fraud.

If you can prove concealment, your measure of damages would be the lesser of costs of repairs of diminution in value at the sale assuming you do not cancel the purchase and return the car to get your purchase money back.


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