Is a dealer liable when he sells to another dealer because he knows of the defect and fails to disclose it?

California, United States of America


The following excerpt is from Power Tool & Supply Co. v. Lakeside Chevrolet Co., 154 Cal.App.3d 947, 201 Cal.Rptr. 702 (Cal. App. 1984):

Appellant urges that the classification now before us may shield a dealer from liability when he sells to another dealer even though he knows of the defect and fails to disclose it. We do not determine whether such a set of facts would create a problem of constitutional dimensions since nothing in the record presented to us suggests that this is the case now before us. (See [154 Cal.App.3d 952] People v. Parker (1973) 33 Cal.App.3d 842, 849, 109 Cal.Rptr. 354; Pain v. Municipal Court (1968) 268 Cal.App.2d 151, 152, 73 Cal.Rptr. 862.)

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