HELP!!! Question about SOLD AS IS

[ann_byer]

Hello! Everyone,

I need help with following situation.
The story seems long, please be patient.

I sold my 1994 VW Golf III last week to Lady A. It was a private-party sale. Although I didn’t include the car condition on the contract of sale, I clearly stated on the sale ad and during test drive. “SOLD AS IS” was put into the contract of sale.
I notified the DMV online that I sold my car (Notice of Transfer and Release of Liability) and called my insurance company and have the car removed from my policy few hours after the sale.

Few days later, Lady A called and told me that she didn’t report the change of ownership to the DMV and yet sold the car to Lady B.

My questions are:
1) Lady A didn’t report the change of ownership to the DMV and yet sold the car to Lady B. Will I be responsible for any kind of legal issues?
2) If anything happens to the sale between Ladies A & B, for example: Lady B complains about the condition of the car, will I be involved?

I am very worried.
Your comments are highly appreciated!

[bmwgolfguy]

Well Ann, you pose an interesting set of facts. Here is my reaction.

You sold the car to Lady A "as is". Under the Uniform Commercial Code, which most states have adopted, that means you made no warranty with respect to that vehicle and Lady A as it relates to that sale. If that is the case, she takes the vehicle "with all faults" and no warranties, express or implied.

Let's assume for the moment there was a susequent problem discovered by Lady A shortly after she purchased the car from you. She would normally be SOL unless she alleges and can prove some fraud on your part. This may be very difficult for her to prove. So short of proof of fraud by you (i.e. some major problem you knew with the car and didn't disclose to Lady A) again she would be stuck. The reason she is stuck is because you specifically sold the vehicle as is and with all faults. This is especially true if she drove it and you gave her the opportunity to have a mechanic of her choice inspect the vehicle.

As to Lady B, you have no liabilty. Your contract was with Lady A. What Lady A does with the car after she owns it is her problem. The only way you could possibly be on the hook with Lady B is if Lady A told you at some point she was going to be turning the car over to Lady B. This could possibly be construed as a "third Party beneficiary contract". Your facts as you have explained them, don't include this.

Does this mean you can't be sued? Of course not. Anyone can sue anybody any time they want. The question is will they be successful on the merits. Because you sold the car "as is" and Lady A knew this, she will in all likelyhood lose in a suit against you. As to Lady B, she lacks what is called "privity of contract" as between her and you, meaning you and her had no kind of deal or contractual relationship. So in a suit by Lady B as against you, she also likely loses.

If you are sued and win, I would ask for attorney fees and any other costs you may be out of pocket, because the suit was without merit and intended to harass or bully you to take the car back and give Lady A her money back.

If you are sued, you should probably consult a lawyer in your state and get his his opinion.

Good Luck!

['97ventureowner]

Please post your question only once, and in one forum. I am moving this to Car Buying Q&A because the theme of this thread fits this forum better, and you might get some better responses here.
I tend to agree with bmwgolfguy's response as your liability ended when you sold the car and notified your DMV.