Shawna and Sheila live in a small northern community where the roads are not always plowed in the winter. After getting stuck in the snow one too many times, they decided their best option for a reliable vehicle was a used 434 truck. Within a few minutes of stepping onto the lot of Farmer Jane's Cars Ltd, Shawna and Sheila spotted a truck they liked and Shawna asked the sales manager, Baltar, for some more information. While Baltar was telling Shawna about the truck's features, Sheila noticed that a decal was missing from the back of the truck. When asked about the missing decal, Baltar told her, "When we received the truck at the dealership, there were a few scratches and other marks that we touched up and painted, but that's about it." Baltar also told Shawna and Sheila that the truck had new wheels and tires. Shawna and Sheila talked about the truck for a few hours that evening and decided to buy it. The next day they finalized the paperwork and drove the truck home.

A few months later, Sheila lost control of the truck on a snowy road and crashed into a ditch. She was fine, but the truck required repairs costing a total of $5000. When the local mechanic, Tanya, had the truck on a hoist, she noticed some damage to the body that she thought was from a previous accident. Tanya told Sheila about the older damage. Sheila phoned the provincial insurance company and had a representative look into the claims history of the truck. The insurance company representative told her that the record showed the truck had been reported stolen a few years ago and had sustained $1900 worth of damage at that time. It turns out that these damages were repaired by the mechanics at Farmer Jane's.

Shawna and Sheila are upset that they were not told about the full repair history of the truck and want their money back. Will the couple be successful in proving that Baltar's statement about the scratches on the truck amounted to a misrepresentation that induced them to enter into the purchase contract? If so, are they entitled to rescission?