It's one thing if they went out and bought the bike and were fully aware of the previous use/damage, it's another if it was traded in and they just assumed that all was well.
They could have forgotten to pull a carfax/carproof report or they could have done it completely on purpose.
I wasn't there but I wouldn't call them out on anything until I have all my facts straight.
I doubt GP Bikes buys out of province bikes to resell in Ontario but I could be wrong.
Not trying to be a dick, but isn't the fine an indicator here?