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Canceling the check is, likely, not the best way to resolve his.
Doing so could, arguably, subject you to criminal prosecution.
And it would not help your civil case.
If the dealer misled you in this transaction, you would have a legal claim against them...you could, for example, sue in small claims court to recover for the losses you incurred due to their lying to you.
So you do have recourse.
But canceling the check would allow them to ask that you be prosecuted...to avoid that possibility I would not cancel the check
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