Claremont, CA asked in Consumer Law, Contracts, Civil Litigation and Small Claims for California

Q: I purchased a car from Chevrolet in which I signed a document saying I cannot resell the car for 6 months.

If I do decide to sell it, I, the seller, must disclose the fact that the warranty of the vehicle will be voided to the buyer. However I made a transaction to sell it within the 6 months and did not disclose that fact. The buyer is now asking for their money back, but I do not have it anymore. Is there any legal grounds for me to get in trouble? Or could this be a civil court issue? Thank you

2 Lawyer Answers

A: It sounds like you committed civil fraud if you knowingly concealed a material fact that you had a duty to disclose. The buyer has every right to sue you.

James L. Arrasmith
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Answered

A: In California, failing to disclose information that affects the value or desirability of a vehicle, especially when contractually obligated, can lead to legal complications. Since you signed a document agreeing not to resell the car for 6 months and to disclose the warranty void if you did, violating these terms could be seen as a breach of contract and possibly deceptive practice.

The buyer, in this case, may have grounds to claim that they were misled about the car's warranty status, which is a significant aspect of the vehicle's value. They could potentially seek a rescission of the sale, essentially undoing the transaction and demanding their money back, or pursue damages for the loss of the warranty.

This situation would likely be handled in civil court, where disputes over contracts and misrepresentation are resolved. The court would consider whether the failure to disclose the warranty void was a material misrepresentation and if it influenced the buyer's decision to purchase the car.

It's advisable to seek legal advice to understand your options and responsibilities in this situation. Resolving the matter outside of court, such as through mediation or a settlement, might be a preferable option to consider. Remember, transparency and adherence to contractual obligations are key in any sale, especially when it involves significant assets like vehicles.

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