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You do not need a bill of sale, you do not need to register the transfer, you only need to ask if the person is prohibited from owning firearms. No, there is no liability, even if the person lied and was a prohibited person, but said he was not. That has been through court when they tried to sue the firearms manufacturer for a crime committed by their product...
Can they sue you? Sure, I can sue you for any reason I want, as anyone else can...but why feed the lawyers...I cannot win (unless you have actually wronged me).
Can they sue you? Sure, I can sue you for any reason I want, as anyone else can...but why feed the lawyers...I cannot win (unless you have actually wronged me).