Legal Question in Business Law in California

Re: buyers rights in calfornia

A verbal contract is as binding as a written contract -- if it can be proven. Also, a verbal contract has a 2 year statute of limitations (period in which suit must be filed) rather than a 4 year statute.

The damages you can recover if you win your case would be the value of the car as it was represented to you minus the value of the car as it actually is -- or you could ask to have the purchase price refunded and return the car.

If the amount you paid is $5,000 or less, your best bet is probably to go to small claims court.

Re: buyers rights in calfornia

Your situation tends to divide into two issues, in my view. First, whether there is an enforceable contract. Then, second, whether the contract contains any kind of warranty that covers the defects you mention, or whether you can make your case on the basis of fraud (failure to disclose, misrepresentation).

There is a law requiring all contracts for the sale of goods for over $500 to be in writing and signed by the person to be sued in order for a lawsuit to be brought on that contract. So, if you paid $1,000 for the car, there would have to be some written evidence of the contract, bearing the seller's signature, in order for you to be allowed to bring a legal action against him. See Commercial Code, section 2201(1).

However, the requirement of a writing is construed quite broadly. Anything bearing the seller's signature and pointing toward the existence of a contract to sell that car to you might be sufficient, fir example, the DMV paperwork transferring title would probably be enough, assuming of course you did get a signed pink slip from the seller.

So, if you can establish a contract, your next problem is whether there was an express or implied warranty or fraud by misrepresentation. Here you have a difficult proof problem as to possible fraud (but you do have a witness and this would help). In order to win on a misrepresentation (fraud) basis, you must prove that the seller knew of the defects, withheld the truth with intent to stick you with a lemon, and that your reliance on the seller's description of the car was reasonable, i.e. you did not overlook the obvious or pass up an opportunity to road test or get a mechanic's checkup.

I assume there was no express warranty, or, that if there was, you can't prove it. Whether you can claim an implied warranty probably depends upon whether the seller was a 'merchant,' i.e. a dealer or car enthusiast or mechanic who can be held to have specialized knowledge about cars, or merely an average citizen. If the former, you can probably assert an implied warranty against defects that are not usual in cars of that age, mileage and general condition. If the seller had no specialized experience with used cars, there is probably no implied warranty.

Sorry if the answer rambles a bit, but the outcome is heavily dependent on facts not given.