Fruehauf Corp. v. Lakeside Chevrolet

In Fruehauf Corp. v. Lakeside Chevrolet (1981) 117 Cal. App. 3d 783, the court held that under Vehicle Code section 24007 a dealer selling to another dealer has no obligation to inspect the vehicle and can assume that the sale is "as is," "without subjecting himself to liability to any future consumer." (Id. at p. 786.) In other words, the dealer who sells to the ultimate consumer is responsible for compliance with Vehicle Code safety requirements and for liability resulting from noncompliance. (Id. at pp. 786-787.) Fruehauf does not foreclose causes of action for fraud between dealers - it was not concerned with causes of action for fraud at all. Fruehauf only stands for the proposition that sales between dealers may be assumed to be "as is" for purposes of compliance with the Vehicle Code and subsequent liability. It does not speak to causes of action between the dealers pertaining to the sale itself, and has no effect on theories of recovery between dealers on contract and business tort causes of action.