The law that governs the contract entered in Nevada would be Nevada state law and if she were to sue, she would probably need to sue in Nevada, since the defendant dealership is located in Nevada. Also, the contract deficiency lawsuit could be brought in either California (where she lives) or in Nevada (where she lived when she entered into the contract and where the contract was signed).
Threat of physical harm may be valid grounds to claim duress, under any state's laws, but proving this defense would be challenging. For instance, was there a police report filed and criminal prosecution for making such threat? How imminent was it? Did the dealership know about it or participate in the atmosphere of threatening her? These are examples of questions that may need to be answered.
I have provided a link to the consumer lawyer's association, which has several in Nevada, whom you can contact directly to find out more about whether her rights were violated and any potential defenses she may have to the contract, under Nevada law. And what steps she can take to better protect herself from a lawsuit. Please be aware that she should act promptly, because there is a statute of limitations on any lawsuit claims, such as the claim of fraud or misrepresentation, if any.
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