A customer purchased a used SUV from a dealership and signed a disclaimer which stated that the vehicle was being sold in “as is” condition. The customer seemed satisfied with the SUV and did not make any attempt to contact previous owners or have it independently inspected. Not long after the purchase, his car developed mechanical problems. Rather than investigate the source of the problems he would simply fix them as they arose. More than five years and almost 50,000 miles later he had the car inspected by another dealer, who determined the SUV was in poor condition. The customer filed a suit alleging fraud in the sale of the SUV. MGM successfully obtained a summary judgment for the dealership, which was affirmed on appeal. Fraud claims must be filed with five years from when the fraud is discovered or it will be barred by the statute of limitations. The Court concluded that the immediate and persistent problems with the SUV should have been apparent to any reasonable owner and the limitation clock began to run and the customer was barred by the statute of limitations for waiting almost six years to bring his claim.
As is purchase/used car purchase/fraud/opportunity to inspect/executed contract terms and conditions