Dealer selling B stock doesn't tell customers


Does the dealer have a responsibility to tell the customers or do we go back to "Caveat emptor" (Let the buyer be ware)
taters
I know of more than one company that has created B stocks when sales are weak by opening new units .  Customers were getting new units at a reduced price and those customers that were afraid to buy B stocks were paying full price, for the same equipment.
I know of a dealer that got in trouble for that and the company took the line away from them. That was several years ago and they never recovered from that. I think they are on their last leg.