GoDaddy sold us a toxic domain with bad back links Phoenix AZ

About a year ago I purchased a domain from GoDaddy. The domain was customconcessiontrailers.com. This domain sat dormant for a year as we were building the site and re-branding the company to this new domain name, which we thought was a clean, never used product. Yesterday, as we were speaking to our new SEO company, they informed us that the site was previously set up in 2002 and was a "TOXIC" site, meaning the site had more than 1,000 bad back links associated with the domain. With the new Google search algorithm the second we were to go live with this site we would automatically be penalized for so many bad back links. Our goal was to recreate a new untarnished site that would help us move up in the Google rankings, not start with a major disadvantage and be penalized for something we did not do. It was there responsibility to disclose that this site, which I bought from them, was "Sick" and had more than 1,000 bad back links associated with the domain. Needless to say this site is "Toxic" and should never have been sold to a new customer. This is a very bad business practice and it needs to be rectified. I am also bringing this up so it does not happen to anyone else, they need to put new policies and practices in place that before a domain is sold they must disclose if it was used before, its history and if has bad back links that will be recognized by Google in Search. This process takes 5 seconds for GoDaddy to review its history of any given site, it is also their responsibility not to market and sell outside domains that are bad.