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Is it legal for a car salesman to let a customer test drive a car that has already been sold to another person

I was at a dealership this weekend and i was given a car to test drive. the salesbloke actually told me that the car had already been sold to another person. is this legal?
Answer
I would say it would matter if the paperwork was singed yet. and if the customer found out what kind of deal he/she made of it.

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