Question

Good afternoon,
    My daughter just brought a new Honda vehicle with the C.A.R.S program and has had the vehicle for 11 days. They have called her and told her that she does not qualify for the government program because she did not meet one of the requirments of having insurance for one continous year prior to the sale. She has had insurance on the trade-in vehicle since 2006 and had made a change to another insurance company in Oct 2008 in which she did not have coverage for 26 days Sept 6-Oct 2,2008.
They are now telling her that the dealership cannot recieve the $4,500.00 credit that they gave her on the old vehicle from the government.
They want her to bring back the new vehicle or make the $4,500.00 deposit in addition to her original deposit of $2000.00 if she wants to keep the car.
The contract she signed is that a legal binding contract? They are telling her that is a conditional contract and they have the right to get the vehicle back because she had misinformed them.