Automobile Fraud: 7.2.3.5 Actual Knowledge Precondition
A state’s new car damage disclosure law may require disclosure only when the dealer has actual knowledge of the damage. Even when the damage occurred prior to the dealer’s receipt of the vehicle, however, it may be possible to show actual knowledge through documents that the manufacturer or transporter provided to the dealer. The manufacturer may also require that the dealer inspect the vehicle for transit damage promptly upon delivery.