Question
M decides to sell his car. He has owned it for 3 years, having bought it second-hand from a car dealer. When he bought the
M decides to sell his car. He has owned it for 3 years, having bought it second-hand from a car dealer.
When he bought the car, M was told that it had only one previous owner, who had carefully maintained
the vehicle and always had it regularly serviced by the same dealer from whom M had bought it. The
dealer also assured M that the car had never been in an accident and that the mileage shown on the
odometer was correct.
M knew that some of the statements made to him by the dealer from whom he bought the car were
wrong. Nevertheless, M advertised it as in excellent condition, accident-free and so on.
When D came to inspect-the car in response to M's advertisement, M repeated that the car had no
accident history, and the odometer reading was genuine. D buys the car from M at the price requested
by M. After owning the car for only a short time, D discovers that some of the statements made to her
by M were untrue, and she consults you for advice as to her legal rights.
Advise D of what action (if any) she can now take against M? When providing your advice, assume
that it can be proven that the true value of the car as described by M and bought by D (given the
accident history and increased mileage) is $17,000.
(Total: 20 marks)
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