I don't even think this question is up for debate.
I think that the seller has the absolute responsibility to disclose every known issue. I sold a JD 110 a month ago and dang near talked him out of buying it because I was going through every minute detail of what was wrong with it. I even told him that two of the lug bolts did not have the original "JD" stamped on them. He seemed to be a collector, so I wanted him to know everything.
As stated already in this thread, honesty is the golden rule of doing business.
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