SELLING: Caveat Venditor

The Kentucky court of appeals last week handed down a decision that was enough to give pause to used-car dealers. The court ruled, in effect, that a used-car dealer must tell his customer about defects in a car that "make it a menace to the public," or else be liable for any damage the car may cause.

The case involved Gaidry Motors, of Lexington, which sold a used car to William Hensley. He drove it 14 blocks, and as he stepped on the brakes approaching an intersection, the brakes grabbed and locked. The car skidded wildly into a curb and...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!