QUESTION

Our dealership sold us a car that had a salvage title which is iillegale.

Asked on Jan 23rd, 2013 on Consumer Fraud - Nevada
More details to this question:
someone sold us a car claiming it had a clean title.it had a salvage title however.we only found this out later... hiddnen deep in a carfax report... when we bought it they refused to show us one and we couldnt afford to buy one.they specifically told us it did NOT Have a salvage title (we asked this cause our previous car had a salvage title and we wanted to make sure our new car did NOT).Our finance company has a copy of the title which says it is NOT a salvage. However this is only possible because it was changed through title washing in the state of kentucky after being transferred from illinois we want to sue cause no one will buy the car or accept it as a trade in. What do we do?
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1 ANSWER

R. Christopher Reade
If the Seller expressly told you that this car had a clean title and not a salvage title, this would constitute misrepresentation. Even an "as is" sale does not excuse a Seller from informing you of all material facts which it knew prior to engaging in the sale. Intentional misrepresentation is established by three factors: (1) a false representation that is made with either knowledge or belief that it is false or without a sufficient foundation, (2) an intent to induce another's reliance, and (3) damages that result from this reliance. With respect to the false representation element, the suppression or omission “ ‘of a material fact which a party is bound in good faith to disclose is equivalent to a false representation, since it constitutes an indirect representation that such fact does not exist.' ” Nelson v. Heer, 123 Nev. 217, 226 (2007). You will be required to introduce evidence to establish that the Seller knew or should have known of the salvage title, that this condition was a material factor that you as a purchaser would have considered when purchasing the vehicle. Id. Even if the Seller did not intend to deceive you, the misrepresentation could constitute negligent misrepresentation. See Barmettler v. Reno Air, Inc., 114 Nev. 441, 956 P.2d 1382 (1998) (providing that one who, without exercising reasonable care or competence, “supplies false information for the guidance of others in their business transactions” is liable for “pecuniary loss caused to them by their justifiable reliance upon the information”). Both causes of action require a showing that damages resulted from the tortious misrepresentations. Nelson, 123 Nev. at 225, 163 P.3d at 426; Barmettler, 114 Nev. at 449, 956 P.2d at 1387. Obviously your inability to be able to sell the car is adequate damages.
Answered on Jan 23rd, 2013 at 2:42 PM

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