Nieto v. Pence
United States Court of Appeals for the Fifth Circuit
578 F.2d 640 (1978)
- Written by Alex Ruskell, JD
Facts
The Motor Vehicle Information and Cost Savings Act was enacted to protect consumers from fraud while buying motor vehicles. Under the act, it was fraud for a seller to change a vehicle’s odometer reading. Sellers also had to disclose to buyers that the actual mileage was unknown if the odometer was known to be incorrect. Nieto (plaintiff) bought a truck from Pence (defendant), a used-car dealer. Pence did not disclose that the actual mileage was unknown. Although Pence did not actually know that the odometer was incorrect, the odometer reading was suspiciously low for a 10-year-old truck and Pence had been in the auto business for approximately two years. Nieto sued Pence for violating the act. The district court ruled in Pence’s favor, finding that Pence did not have actual knowledge that the odometer had been changed. Nieto appealed.
Rule of Law
Issue
Holding and Reasoning (Godbold, J.)
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