Legal Question in Business Law in California

I just sold my car via craiglist for $3600 and 2 days later received a call that the car was not in good condition. The buyer mentioned that he had it checked out by a mechanic (after the buy that is) and that it had been in a previously �unreported accident� and needed repair worth over $2000.

When I sold it, the car had a clean title and to my knowledge had no major problems.

When we sold the car the new owner had taken it for a small drive and was happy with the performance.

Now we received a letter from a lawyer threatening us with the 'magnusson moss warranty' and 'lemon law' to either pay for those estimated repair costs or buy back the car. The also threatened us not to transfer the title so that we would be liable for any damages done by the car.

They offer us 2 options, either to pay for the repair or to buy back the car.

Could you please let me know if they have any grounds to file a lawsuit?

Thank you


Asked on 2/07/11, 10:39 am

1 Answer from Attorneys

They do not have grounds under the Magnusson-Moss Act, unless you gave a written warranty, or are a "merchant" under the California Commercial Code. I would have to do some research to be sure, and that is beyond the scope of a free question, but I do not believe the Song-Beverly "lemon law" applies either, unless you gave a warranty. That does not, however, mean you are off the hook. If you knew the car had been in an accident, you may have been obligated to disclose that, even if you thought the car was fine.

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Answered on 2/07/11, 11:00 am


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