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Section 15

Vehicle History Disclosure

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15.2 Known Damage

  1. Material damage to new vehicles which is known to the dealer must be disclosed to the potential purchaser. [V.C. §9990] Material damage is that which a potential purchaser would want to know in making his or her decision to purchase the vehicle.

    1. Although the Vehicle Code does not expressly require a dealer to disclose material damage on a used vehicle to a potential purchaser, a dealer may still be liable for breach of contract, fraud, and/or negligence under tort law for failing to disclose material damage to a potential purchaser. For the protection of the dealer, disclosure of material damage should be made to the potential purchaser in writing, and signed by the purchaser prior to the sale.

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