Rebuilt, that can mean a few different things, do you have paper work on what exactly was done?
You can try, but you most likely will have to prove they did not put oil in the car. It is possible, when I get an oil change I check the level in the parking lot before I leave. I have oil over filled by 2 quarts and one time the wrong filter was installed so oil was running out of the car.
Did the low oil light come on? If not then the car could have lost 2 quarts of oil when the engine blew.
Also did your friend drain the oil, because the low point on a dip stick, is not empty oil, usually on only one quart low and the bottom of the dip stick is 1.5 quarts low, so still a few quarts in the engine.
Best of luck.
Basically I don't thing you have a leg to stand on.
A used car could use or loose most of it's oil in a month if you are doing a fair few miles, and not actually be "faulty". If they hadn't filled it at the service, it woulnd't have lasted a month.
To win a case against the service centre you will need to prove they made a mistake, and finding the vehicle out of old a month later... That probably doesn't cut it.
You are responsible for checking the oil. They have no way of predicting how much oil the engine will use over time.
Just because it was "rebuilt", doesn't mean it was good. Used car salesman toss that word (rebuilt) around like yesterdays news.
You should check your own oil, like wiping your own a$$. There's just some things you do for yourself and checking your oil is one of them.
I went to Firestone for repairs on my new to me car. It is a 2005 Hyundai accent with a rebuilt engine. I paid for several repairs, an oil change, and a complete vehicle inspection. I kindly told them to check for anything that could be wrong with the vehicle because I wanted to do the repairs through them. It was over 500 dollars in repairs. A month later my engine blows with no warning. A family friend inspected the car a found that it had close to no oil. Could I take them to a small claims court for the cost of a new engine and installation?
* I was aware off the risks of buying a used car. I also was willing to pay for any repairs it might of needed. I took it to firestone because they are professionals.