Contrary to popular belief, California's three
(3) day right to rescind some contracts such as home solicitation (door-to-door) contracts, mortgage loan contracts, dating
service agreements, and others, does not apply to automobile purchase agreements. In fact, the only right to rescind found
in the standard automobile purchase agreement, is in favor of the dealer to rescind if no financing can be arranged
(in which case, the sales agreement is deemed rescinded by law, with each party obligated to return to the other any money
or property previously given).
However, misrepresentations, even innocent ones, concerning
a matter of significance as to the quality, age, benefits, rights, certification, geographic origin, characteristics, uses,
grade, and others, during the sales negotiations are prohibited by the Act, and readily provide a remedy to rescind the contract,
obtain actual damages, and if a lawsuit is necessary, to recover attorney's fees and court costs from the dealer or other
business.
This means that when the new car salesperson/finance manager tells you the car is
new, when in fact it was a demonstrator, or worse, that it was sold once to someone whose financing did not go through and
the sale "rolled back", or other disclosures required by law were not made, help is available.
This means that when the used car salesperson tells you their shop thoroughly examined the vehicle and found it to be in excellent
mechanical condition, and based thereon, you agreed to buy it "As-Is", help is available. Or, when the finance manager
tells you a service contract is required to get financing, or the service contract covers a blown engine or transmission when
it does not, or other misrepresentations were made or required disclosures not made, help is available.
This means that when the mortgage broker tells you to go ahead and sign the defectively drawn mortgage loan documents, and
you will get a refund of the "erroneously" included points or other charges, help is available.
