Is a car dealership allowed (By Law) to sell a used vehicle that is unsafe?

I bought a used vehicle on Saturday and signed the "as is" paper. I drove the vehicle home and everything seemed fine. I did not drive the car again until Monday when both the check engine light and a break light came on. THEN i HAD NO BREAKS! I stopped the car before anyone was hurt- but is this legal? I know I bought it as is but are they allowed to sell me a death trap? ( The car dealer told me before I bought the car that it had gone through their 16 (or some #) point inspection and that it was a very good car mechanically!! I feel like such fool- they seen a older woman and thought BINGO!