Brewer Automobile Sales ( a used car dealership) is selling a 2017 Subaru Outback with
an odometer set at 50,000 miles for $27,000. Bill Smith comes in to the dealership looking to
purchase a 2017 or 2018 Subaru Outback with low mileage. Bob from Brewer Auto shows him
the above car with the 50,000 miles. Bill does not know that Brewer Auto Sales regularly alters
the mileage and this particular vehicle actually has 100,000 miles on it and is worth
considerably less. Bob, who alters the mileage does know that he turned back the odometer
reading from the 100,000 to the 50,000. Bill purchases the vehicle and then reads an article in
the paper about Brewer Automobile Sales articulating that this has been a long standing
practice. Bill decides to sue Brewer Auto Sales and Bob for a civil case of fraudulent
misrepresentation. Please explain the elements required for a fraudulent misrepresentation
claim, then apply the facts to determine the likelihood of success for this claim to move forward.
Lastly, please find a case from Montana, Colorado or California where a claim of fraudulent
misrepresentation was the issue and summarize the results.
Issue Spotter 3
Bill Smith purchased a 2017 Subaru Outback from Brewer Auto Sales which was
advertised with 50,000 miles on the odometer. However, Bill was unaware that the car he
purchased had actually had 100,000 miles on it and was worth considerably less than he had
assumed. Bob from Brewer Auto had tampered with the odometer reading, and Bill later found
out about this practice from an article in the paper. After learning of the dealership's fraudulent
practices, Bill sued Brewer Auto Sales and Bob for civil fraud.
In order for Bill Smith to succeed in a fraudulent misrepresentation claim against Brewer
Auto Sales and Bob, he must be able to prove the following elements: a false representation of a
material fact, knowledge of falsity, intent to deceive, justifiable reliance, and damages.
