Tire Bulge problems of the 1999 Volkswagen Beetle

We test drove cars at rod & tys all star auto in puyallup, we noticed that the tires were bald and one car had a bulge and tear in the outside of the tire. I brought this to their attention and they said they aren't required to make these cars safe. That is the buyers responsibility. I was very upset. These tires are so bald they aren't even legal. I would like this place investigate to shut down before some is hurt or killed from the dangerous cars.