Lindberg Cadillac Company v. Aron
Court of Appeals of Missouri
371 S.W.2d 651 (1963)
After his Cadillac's engine block cracked, Leonard Aron (defendant) had a service technician apply sealant to conceal the cracks rather than pay roughly $500 for a real repair, intending to trade the car in. Aron then traded the concealed-defect Cadillac to Lindberg Cadillac Company (plaintiff) for a new car; Lindberg's sales manager, unable to detect the sealant-hidden cracks, offered $2,290 for the trade-in, which Aron accepted without disclosing the true condition. Lindberg spent money reconditioning the car for resale and sold it for $2,476, but the buyer returned it after discovering the cracks caused overheating; Lindberg then discovered the concealment and sued Aron for fraud, and the trial court awarded $759 in damages, denying Aron's motion for a new trial.
Whether an automobile seller's silence about an important, material matter, which is vital to the contract of sale, may constitute fraud.