Does a vehicle dealer who misrepresents the condition of a vehicle can be liable for damages to the buyer?

22. However, if a seller misrepresents a vehicle’s condition, the buyer may be entitled to compensation for losses arising from that misrepresentation. A “misrepresentation” is a false statement of fact made during negotiations or in an advertisement that has the effect of inducing a reasonable person to enter into the contract (see discussion in Shaughnessy v. Sidhu, 2016 BCPC 308 at paragraphs 89-105).

23. A negligent misrepresentation is where the seller fails to exercise reasonable care to ensure representations are accurate and the buyer must have reasonably relied on the negligent misrepresentation to enter into the contract to their detriment (see Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 SCR 87 at paragraph 110).

24. A fraudulent misrepresentation occurs when a seller makes a representation of fact, the representation is false, the seller knew it was false or recklessly made it without knowing it was true or false, and the buyer is induced by the false representation to buy the item (see Ban v. Keleher, 2017 BCSC 1132).