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Toyota LandCruiser: safety features faulty on second hand model

I purchased a 2004 Toyota Landcruiser 100 series last year. It had done over 200,000 km and had no warranty with it, but after buying it I discovered that the airbag indicator light on the dash was not working. Can the dealer sell a motor vehicle with some of its safety features faulty, even though there is no mechanical warranty on the car?

Warning lights are not usually checked on cars prior to sale, but I would expect a dealer would repair the fault when it was pointed out to him.

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