Can a seller misrepresents a vehicle’s condition?

27. 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 that has the effect of inducing a reasonable person to enter into a contract. The seller must have acted negligently or fraudulently in making the misrepresentation, the buyer must have reasonably relied on the misrepresentation to enter into the contract, and the reliance must have resulted in damages (see Queen v. Cognos Inc., 1993 CanLII 146 (SCC), [1993] 1 SCR 87 at paragraph 110).