If I purchased a vehicle with a clean car history report but later find out it had been in an accident and the dealer knew, is that fraud?
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If I purchased a vehicle with a clean car history report but later find out it had been in an accident and the dealer knew, is that fraud?
Asked on May 3, 2012 under General Practice, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If the dealer knew, then yes, that could constitute fraud: fraud is the knowing misrepresentation (or lie) about a material (or important) fact, made to induce someone to do something or enter into a transaction. Representing a vehicle that had been in an accident as one that had not been would be misrepresentation of a material fact, so if the dealer knew of the true state of facts, this would seem to be fraud.
If it is fraud, you could potentially rescind the transaction (give car back, get money back) or seek monetary compensation (e.g., the difference in value between the car as it actually is, having been in an accident, and the price you were charged based on the representation it had a clean history).
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