[atreis]

A few different points ....

* What one can legally tow without brakes varies (a lot) by state, with mountain states and highly populous states having much lower unbraked weight limits than flat, unpopulated states, for obvious reasons. What one can tow safely has very little to do with what one can tow legally and depends a lot on experience, speed, etc...

* If the brakes are actually engaging - pads pressed against drums - then the dealer could be right. New brake drums have a coating (a light coat of oil on the drums to keep them from rusting while sitting in storage before being used) that will very quickly burn off when they're first used. A couple hard stops from a moderate speed is usually enough to take care of this and people generally don't notice because of how quickly it gets burned off.

* If the brakes aren't engaging and the dealer told you to go home with it, you seriously need to find a new dealer. As Flower suggested, contact GulfStream and they'll most likely get the dealer to do something. Selling a trailer that is legally required to have working brakes and that has been represented as having working brakes, but which doesn't, and refusing to fix it, is very likely illegal in your state. The dealer or manufacturer would almost certainly be liable if there were an accident. If the dealer still insists you take it home, insist that they give you a signed letter on dealer letterhead stating in writing that the trailer is safe and legal to tow according to tow vehicle and trailer manufacturer towing recommendations with the brakes in their current condition. (They will almost certainly refuse, but it will tell them, whether you actually are or not, that you're considering legal action as such a letter is legally binding. That will likely get the attention of the dealer owner/manager.)

* If all else fails, talk to a lawyer. Generally, just having a lawyer write a letter to the dealer explaining the law in your state and liability is enough. While talking to the lawyer, check into your state's lemon laws, if it has any. If the dealer CAN'T fix the problem, they might apply.