When is rescission automatically granted under the MVDA?

Rescission is automatically granted under the Motor Vehicle Dealers Act (MVDA) when a dealer fails to disclose specific material facts about a vehicle. These three specific items typically include the vehicle's previous use, any accident history, and whether the vehicle was salvaged or rebuilt. These disclosures are crucial as they provide the buyer with essential information that could significantly influence their purchasing decision. By ensuring transparency regarding these key aspects, the legislation aims to protect buyers from potential fraud.

The law emphasizes the importance of full and honest disclosure regarding a vehicle's history. This is why the automatic rescission mechanism is in place, providing consumers with a safeguard against deceptive practices that could fundamentally alter the value or desirability of a vehicle. If a dealer does not fulfill this obligation and omits these vital pieces of information, the buyer is justified in seeking rescission of the contract without needing to prove additional harm or intent to deceive on part of the dealer.