Legal Question in Product Liability in Indiana

Used Car

I sold a used car and had the customer sig a as is form and a contract to pay the balance in 6 weeks. The deposit was $265.00 and he knew that it was as is and no matter what happened to the car he had to pay. But a day later the cars engine started on fire and the car is now towed away. He got minor injuries and missed a days worth of work. Do we, used car dealership, have to give him his deposit back and not expect him to pay the unpaid balance. Can I be sued them for this? Also is there a 72 hour waiting time the customer has to say they don't want the car. I am a sole proprietor.


Asked on 7/29/01, 7:37 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Used Car

The rules are different for dealers than for private citizens selling a car out of the back door. The dealer is presumed to have superior knowledge about cars in general and the one he is selling in particular, so having a buyer sign a disclaimer may not be the end of the story.

Any private party has 72 hours within which to repudiate a retail sales contract or financing arrangement. This must be done in writing to the dealership.

Bottom line, work with him and see what can be salvaged because legal proceedings are far too expensive in a case such as this. If all else fails, resolve the dispute in small claims court.

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Answered on 7/30/01, 1:51 pm


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