But make sure you inform the new owner about the bag deployment, it would only be fair.
My advice? Be nice. Don’t threaten to sue, or even imply you may. Appeal to them on the basis that something was not right with the car, that you did not cause, and that they owe it to you to make you whole. Also, if necessary, remind them that no amount of fair wear and tear should have resulted in unintended air bag deployment. Finally, I am the original owner on the car on which we had the same problem, and I think that helped. Also, the car had never been wrecked nor had the air bag system ever been worked on by anyone since it left the plant. Good luck. And be advised, it will be a good sign if they ask to keep the car for a while to go over it with a fine tooth comb to rule out any cause other than a malfunction in the system.
Absolutely!
If you do dump the car, you should inform the new owner of the potential airbag problem.
If you don’t, bad karma will follow you for the rest of your life.