Counter-Arguments for California Auto Sales Fraud Cases
When you confront a dealer about fraud, they typically respond with predictable defenses. Most of these defenses are legally weak or outright invalid under California law. Understanding how to counter them strengthens your position.
Remember: California law strongly favors consumers in auto fraud cases. The Consumers Legal Remedies Act (CLRA) provides for treble damages and attorney fees, making these cases attractive for consumer attorneys.
The dealer claims that because the vehicle was sold "as-is," they have no liability for any problems. This is one of the most common but legally weakest defenses in auto fraud cases.
"The 'as-is' clause does not protect you from fraud. Under California Civil Code § 1668, contract provisions cannot exempt a party from liability for their own fraud. Your dealership made affirmative misrepresentations about [the vehicle's history/condition/mileage] and/or actively concealed known defects. Additionally, California Civil Code § 1751 makes CLRA rights non-waivable, so any disclaimer is void and unenforceable against my fraud claims."
The dealer argues that because you signed all the paperwork, you're bound by everything in it and can't complain. This ignores fundamental contract law principles.
"My signature on the contract does not validate your fraud. Under California Civil Code § 1689, I have the right to rescind a contract when my consent was obtained through fraud. I signed the contract based on your misrepresentations about [the vehicle]. Had I known the truth, I would not have signed. A signature procured by fraud does not bind the victim to accept the fraud."
The dealer claims you're at fault for not getting an independent inspection before purchase, so any problems are your responsibility.
"I had no duty to assume you were lying and investigate your representations. Under California law, the duty to disclose material facts rests with the dealer, not the buyer. You are a professional seller with superior knowledge of this vehicle's history. I reasonably relied on your representations. Courts consistently hold that fraud victims are not required to investigate representations made by sellers acting in a professional capacity."
The dealer claims that because their misrepresentations weren't in writing, they can't be held to them due to the "parol evidence rule" or integration clauses.
"The absence of written promises does not protect you from fraud claims. Under Riverisland Cold Storage v. Fresno-Madera, the California Supreme Court held that parol evidence is always admissible to prove fraud, regardless of integration clauses. Your oral misrepresentations about [the vehicle] are actionable fraud. Additionally, your [advertisements/website listing/window sticker] contained written misrepresentations that are fully admissible."
The dealer claims too much time has passed since the purchase to bring a claim. This defense requires careful analysis.
"The statute of limitations does not bar my claim. Under California Code of Civil Procedure § 338(d), the limitations period for fraud does not begin until the plaintiff discovers the fraud. I did not discover your misrepresentations until [date], when [how you discovered it]. My claim was filed within [X] years of that discovery date. Additionally, your active concealment of [the fraud] tolled the statute until I had reason to discover the truth."
The dealer claims they had no knowledge of the defect, damage, or misrepresentation, so they can't be liable for fraud.
"Your claim of ignorance is not credible and not a legal defense. As a licensed dealer, you have a duty to investigate vehicle history before sale. The [prior accident/salvage history/odometer discrepancy] was documented in records you were required to check. Even if you didn't actually know, you had constructive knowledge because this information was readily available through standard industry sources. Willful ignorance does not excuse fraud."
The dealer blames the prior owner, trade-in customer, or auction house for not disclosing the vehicle's problems.
"What the previous owner did or didn't disclose is irrelevant to your liability. You are a licensed dealer with independent duties to investigate and disclose vehicle history. I purchased the vehicle from you, not the previous owner. My contract and my fraud claim are with your dealership. If you believe the prior owner defrauded you, that's between you and them - it doesn't diminish your responsibility to me."
The dealer claims the contract includes an arbitration clause that prevents you from suing in court.
"The arbitration clause may not be enforceable for several reasons. First, under McGill v. Citibank, the clause cannot waive my right to seek public injunctive relief under the CLRA. Second, the clause is unconscionable because [it was hidden/not explained/is excessively one-sided]. Third, the clause does not preclude small claims court, where I intend to file. Even if arbitration is required, I am entitled to pursue my claims - the arbitration clause merely affects the forum, not my substantive rights."
The dealer argues that even if they did something wrong, you haven't suffered any real financial loss, so you're not entitled to compensation.
"I have suffered substantial damages. The vehicle I purchased was represented as [clean title/no accidents/XX miles] but was actually [salvage/damaged/YY miles]. The difference in value is significant - a [vehicle description] without this history is worth approximately $[X] more than one with it. Additionally, I am entitled to rescission under California law, meaning I can return the vehicle and recover my full purchase price regardless of current value. I have also incurred [list out-of-pocket costs]."
After you've driven the car home, the dealer calls claiming the financing "fell through" and you must return the car or sign a new contract with worse terms. This is the "yo-yo" or "spot delivery" scam.
"I have a binding contract for the purchase of this vehicle. Once I signed the contract and took delivery, the sale was complete. You cannot unilaterally rescind our agreement. If your financing fell through, that was your business risk to manage before delivery. I am not obligated to return the vehicle or sign any new contract. If you believe you have a valid conditional sale agreement, provide me a copy showing compliance with Civil Code § 2981. Otherwise, I expect you to honor our agreement."
File complaints about mechanical misrepresentation.
Phone: (800) 952-5210
bar.ca.govConsumer fraud complaints against dealerships.
Phone: (800) 952-5225
oag.ca.govFind an attorney who specializes in auto fraud cases.
consumeradvocates.orgDisclaimer: This information is provided for educational purposes only and does not constitute legal advice. Each case is unique and the law may have changed since this was written. For advice about your specific situation, consult with a California consumer attorney. Many auto fraud attorneys take cases on contingency.
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