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No, it's not right and you should not have to pay it.
The law states that up until 6 months after the sale of the vehicle, it's up to the dealer to prove that the fault wasn't there when he sold it to the purchaser. This is called the "Reversed Burden of Proof". They will know this (or should) and you can cite it to them if they claim "it's your fault"
If you have bought from a dealer in the course of his business then the Sale of Goods Act 1979 implies certain terms in to your contract with the dealer for the purchase of the car.
Go back to them, state that the car is not of a satisfactory quality under s14(2) of Sale of Goods Act 1979 and that she is entitled to ask for it to be repaired at their cost, not hers
If they are not compliant you should also tell them you will contact Trading Standards, http://www.tradingstandards.gov.uk/, and Retail Motor Industry Federation (if they are a member, http://www.rmif.co.uk/.
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That's not really a huge problem - her rights still subsist. She can just state that she was not aware of her rights. She should refer them to the above immediately and state that if they disagre then they should cease the work until the issue is resolved.
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Well, you could still sue citing that she was flustered etc etc in to accepting the money off. It's not something that you should instruct a solicitor over obviously - you can do it very easily through www.moneyclaim.gov.uk.
It can be time-consuming though and I personally would write it off (and I'm a solicitor)unless you consider there's any great principle at stake.
Treat it as a learning experience - always take advice before doing anything in consumer issues.