Car Sold As New Even Though Damaged

[alexcanas]

I bought my car 14 months ago and when I had the the old changed at the Jiffy Lube recently, they determined during a routine check that the wheel well in the trunk was full of water. The jack is rusted. I took it to the dealer I purchased it at and they determined that the car had been in a accident. I saw it with my own eyes and its true. The twist is that I have never been in an accident. They are telling me that the manufacturer does not cover this because its a physical damage. Has anyone had something similar happen to them like this not necessarily with a Toyota but with a new car? The accident happened prior to me owning it therefore, I was sold a damaged car as new. They never said anything. Wouldn't that be against the law? Obviously I am very upset. I have contacted Toyota headquarters and some others are going to get involved in the complaint.