What is the name of your state (only U.S. law)? California
Some family members recently purchased a motor home for $3500 from a private seller. They agreed to list the sale price as $500.00 in order to avoid paying sales tax. The seller sold "as is", but prior to that represented that the motor home was "in good condition and had passed smog with 'flying colors.'" Afterward, it was discovered that the catalytic converter needed to be replaced ($1400 and so could not have legally passed smog) and there were other issues with the engine needing to be fixed, totaling an additional $2200.
I am of the opinion that my family members would be able to introduce evidence of the misrepresentations made by the seller, because the "as is" disclaimer does not apply to misrepresentations made to induce the buyer to enter into the contract, and they would be able to recover the damages they incurred in fixing the motor home.
However, I don't know what effect their lying on the bill of sale would have. Would the judge reduce their recovery? Order them to pay the sales tax on the correct amount? Or would them going to court open them up to greater liability?
