I did a quick search on Google about cars damaged during shipping (or on the lot or trasport) and what constitutes disclosure to the purchaser. This is California's law.
This covers both used and new vehicles. I'm sure there is more out there with more searching.
Non-disclosure of previous damage (accident, no frame damage)
According to the California Vehicle Code, damage sustained by a motor vehicle is material if the damage required repairs having a value, including parts and labor calculated at the repairer’s cost, exceeding 3 percent of the manufacturer’s suggested retail price of the vehicle or five hundred dollars ($500), whichever is greater. The replacement of damaged or stolen components, excluding the cost of repainting or refinishing those components, if replaced by the installation of new original manufacturer’s equipment, parts, or accessories that are bolted or otherwise attached as a unit to the vehicle, including, but not limited to, the hood, bumpers, fenders, mechanical parts, instrument panels, moldings, glass, tires, wheels, and electronic instruments, shall be excluded from the damage calculation, except that any damage having a cumulative repair or replacement value which exceeds 10 percent of the manufacturer’s suggested retail price of the vehicle shall be deemed material. Alternatively, damage sustained by a motor vehicle is material if the damage was to the frame or drive train of the motor vehicle, if the damage occurred in connection with a theft of the entire vehicle, or if the damage was to the suspension of the vehicle requiring repairs other than wheel balancing or alignment.
Every dealer shall disclose in writing to the purchaser of a new or previously unregistered motor vehicle, prior to entering into a contract for the vehicle or, if unknown at that time, prior to delivery of the vehicle, any material damage known by the dealer to have been sustained by the vehicle and subsequently repaired.
Every dealer shall disclose in writing to the purchaser of a new or previously unregistered motor vehicle, prior to entering into a contract for the vehicle or, if unknown at that time, prior to delivery of the vehicle, any damage, including, but not limited to, material damage, known by the dealer to have been sustained by the vehicle and not repaired.
It is also a violation of the California Vehicle Code for the holder of any dealer’s license to advertise for sale or sell a used vehicle as “certified” or use any similar descriptive term in the advertisement or the sale of a used vehicle that implies the vehicle has been certified to meet the terms of a used vehicle certification program if the vehicle has sustained damage in an impact, fire, or flood, that after repair prior to sale substantially impairs the use or safety of the vehicle.
Furthermore, the California Vehicle Code holds that no holder of a dealer license shall make or disseminate, or cause to be made or disseminated, before the public in this state, in any newspaper or other publication, or any advertising device, or by public outcry or proclamation, or in any other manner or means whatever, any statement which is untrue or misleading and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading; or to so make or disseminate, or cause to be so disseminated, any statement as part of a plan or scheme with the intent not to sell any vehicle or service so advertised at the price stated therein, or as so advertised.
In the event that the dealership fails to act in conformity with these laws, the consumer is entitled to remedies to include rescission of the purchase agreement and payment for actual damages, consequential damages, punitive damages, and costs of litigation. In most instances we are able to recover attorneys’ fees as either consequential damages or punitive damages.
