Gary Fronrath Volkswagen, Inc. v. Munsey

The issue on appeal is whether an automobile dealer may be liable to an injured third party by virtue of the sale of a vehicle to an unlicensed buyer.

The appellants, dealer and salesman,, knew that the vehicle buyer did not have a driver’s license. The appellee contends that by placing a temporary tag on the car after assisting in obtaining financing and insurance, and by delivering the automobile to the buyer, the appellants put an unlicensed driver on the road. The appellee was injured in an accident three days later.

The trial court erred in denying appellants’ motion for directed verdict.…