Legal Question in Credit and Debt Law in California
seller of a vehicle
i posted my car for sale a dealership contacted me and wanted to buy the car after one of their sales managers inspected and test drove the car we had a deal we did all the transfer notice of release etc paperwork he gave us a check and drove the car away now they put a stop payment on the funds and said we missrepresented the car to them and they dont want to pay that much can they do that
2 Answers from Attorneys
Re: seller of a vehicle
While there is merit to the use of small claims to recover the "rubber" check, my question is whether there is any merit to their claim that the auto was not as represented by you. Even in small claims they would be allowed to seek a setoff for any undisclosed defects regarding your former auto.
If you think your former auto is worth what you sold it for, send them a written notice of rescission and see if you can arrange to get the car back. If they've already sold the auto, see a lawyer about what to do next.
Re: seller of a vehicle
Depending on the amount, you can either sue them in small claims court (up to $7,500) or in superior court. If you follow the proper protocols, you may be able to recover three times the face value of the check.