SELLING: Caveat Venditor

The Kentucky court of appeals last week handed down a decision that was enough to give pause to used-car dealers. The court ruled, in effect, that a used-car dealer must tell his customer about defects in a car that "make it a menace to the public," or else be liable for any damage the car may cause.

The case involved Gaidry Motors, of Lexington, which sold a used car to William Hensley. He drove it 14 blocks, and as he stepped on the brakes approaching an intersection, the brakes grabbed and locked. The car skidded wildly into a curb and struck a pedestrian, Albert Brannon, crushing his left leg. He sued Gaidry Motors.

A leak in the grease cell of a rear wheel had caused the brakes to lock, the court said, and Gaidry Motors knew about the leak, because the man who sold them the car told them about it. Thus, Gaidry Motors should have warned Hensley. In awarding $11,489.95 to Brannon, the court said: "The used-car dealer is in a better position . . . than his average customer to discover what defects might exist in any particular car ... It is not too harsh a rule to require these dealers to use reasonable care in inspecting used cars before resale to discover these defects."