Fraudulent Real Estate Misrepresentation

Summary

In real estate transactions, fraudulent misrepresentation occurs when a seller knowingly provides false information about a propertys condition, as seen in the scenario where Stewart misrepresented the age and condition of the roof to Yasmine. This constitutes fraud, allowing the buyer to seek remedies such as a price adjustment or credit for necessary repairs. In cases of fraud, the buyer may still proceed with the purchase if the seller compensates for the misrepresented aspects, like providing a credit for a new roof. Legal outcomes depend on the specifics of the misrepresentation and the buyers reliance on the false information. In California, buyers should be aware of their rights and potential remedies in such situations.

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Using the same scenario with Yasmine and Stewart, what is the likely outcome if Yasmine still wants purchase the house? Group of answer choices Caveat Emptor. Yasmine must take the house as is Yasmine cannot move forward with this transaction Yasmine can take the house at the agreed upon purchase price with Stewart providing a credit equal to the cost of a new roof Yasmine can take the house at the original purchase price and she'll receive the difference between $*,* and the cost of a new roof
Given the situation of fraud, the likely outcome if Yasmine still wants to purchase the house would be:
- Yasmine can take the house at the agreed upon purchase price with Stewart providing a credit equal to the cost of a new roof.
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Bill and Diane are hiking in the woods. Diane walks down a hill to fetch fresh water. Bill meets a stranger who introduces herself as Katrina. Bill sells a kilo of cocaine to Katrina who then flashes a badge and mentions how much she enjoys her job at the Drug Enforcement Agency. Diane, heading back to camp with the water, meets Freddy, a motorist whose car has overheated. Freddy is late for a meeting where he expects to make a $* million profit; he’s desperate for water for his car. He promises to pay Diane $* tomorrow if she will give him the pail of water, which she does. The next day, Bill is in jail and Freddy refuses to pay for Diane’s water.  What is likely to happy if both Bill and Diane lose their cases? Group of answer choices They each will have to pay a fine Diane will go to jail and Bill will receive an injunction Bill will go to jail and Diane will receive nothing They both will go to jail
If both Bill and Diane lose their cases:
- Bill will go to jail due to the drug offense.
- Diane will likely receive nothing as Freddy's promise was not in writing and could be considered a gift.
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Same scenario with Bill and Diane-   Bill likely will not be able to use entrapment as a defense because Group of answer choices He is guilty He was tricked Entrapment is not a defense for drug related offenses He was predisposed to commit the crime
Bill likely will not be able to use entrapment as a defense because:
- He was predisposed to commit the crime
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Same scenario with Bill and Diane-   Let's say that instead of Freddy having car troubles, he was also hiking and he was dehydrated and about to pass out. Let's also assume that there is no agreement for Diane to give him water: Would Diane be legally required to provide him with water to rescue and save him? Group of answer choices Yes No
In California, there is generally no legal obligation for an individual to provide aid or rescue to another person in distress unless there is a special relationship (e.g., parent-child or employer-employee). Therefore, if there is no agreement for Diane to give Freddy water, she would not be legally required to do so.
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Maine exempted many charitable institutions from real estate taxes but denied this benefit to a charity that primarily benefited out-of-state residents. Camp Newfound was a Christian Science organization, and * percent of its summer campers came from other states. Camp Newfound sued Maine. This would likely be a violation of the Group of answer choices Supremacy Clause Interstate Commerce Clause Dormant Commerce Clause Rational Basis Test
This situation likely involves the Dormant Commerce Clause. The Dormant Commerce Clause prohibits states from enacting legislation that discriminates against or excessively burdens interstate commerce. Denying tax benefits based on the residency of beneficiaries could be seen as discriminatory.
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Same Maine charity scenario as above-- What if, as a requirement of employment, Camp Newfound required that all of its leaders and executives be avid practitioners of the Christian faith. Would this be an employment law violation? Group of answer choices No so long as they can show that it is a bonafide occupational requirement No because they can set whatever hiring standards they deem necessary Yes because employers absolutely cannot discriminate based upon religion. Yes because it is a first amendment violation
In California, the situation would depend on whether Camp Newfound can demonstrate that being an avid practitioner of the Christian faith is a bona fide occupational qualification (BFOQ).
- No, so long as they can show that it is a bona fide occupational requirement for the position.
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ame Maine charity scenario as above-- What if instead, Maine only allowed to the real estate tax exemption to apply to religious institutions. If there was a non-religious institution that wanted to the tax exemption, what would they be required to show in order to prevail? Group of answer choices A good reason to favor religious groups over non religious groups Disparate impact This is a state's rights issue and they are able to do this Maine's tax exemption requirements are not narrowly tailored to meet a compelling state interest
To prevail, the non-religious institution would likely need to show that:
- Maine's tax exemption requirements are not narrowly tailored to meet a compelling state interest.
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A federal statute prohibits the broadcasting of lottery advertisements, except by stations that broadcast in states permitting lotteries. The purpose of the statute is to support efforts of states that outlaw lotteries. Truth Broadcasting operates a radio station in State A (a nonlottery state) but broadcasts primarily in State B (a lottery state). Truth wants to advertise State B’s lottery but is barred by the statute. What kind of speech is this? Group of answer choices Unconstitutional Speech Commercial Speech Hate Speech Obscene Speech
The type of speech involved in this scenario is Commercial Speech. Commercial speech is defined as speech done on behalf of a company or individual for the intent of making a profit. This includes advertising, which is protected under the First Amendment but to a lesser degree compared to other types of speech.
Do you have any further questions on commercial speech or the implications of this statute?
Jade sued Kim, claiming that Kim promised to hire her as an in-store model for $*,* per week for eight weeks. Kim denied making the promise, and the jury was persuaded: Kim won. Jade has appealed, and now she offers Steve as a witness at the appellate court. Jade wants Steve to testify to the appeals court that he saw Kim hire Jade as a model, exactly as Jade claimed. What type of case is this? Group of answer choices Criminal Civil
This is a Civil case since it involves a dispute between two parties over a contract or agreement.
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Same scenario with Jade and Kim--   If Jade claims that Kim actions were fraudulent, what is the standard of proof that she must meet? Group of answer choices Preponderance of the evidence Clear and convincing Beyond a reasonable doubt More likely than not
In California, if Jade claims that Kim's actions were fraudulent, she must meet the standard of proof known as "clear and convincing evidence."
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Same scenario with Jade and Kim--   Will Steve be able to testify at the appellate court? Group of answer choices Yes because he has new information Yes because that is the only way to seek justice No because this is a matter of law No because if he didn't testify at the trial court, he can't at the appellate court
No, because if he didn't testify at the trial court, he can't at the appellate court.
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John Marshall and Kirsten Fletcher decided to live together. They leased an apartment for nine months, each agreeing to pay one-half of the rent. When he signed the lease, Marshall was *. Shortly after signing the lease, Marshall turned *, and two weeks later, he moved into the apartment. He paid his half of the rent for the first month and then moved out because he and Fletcher were not getting along. Fletcher sued Marshall for one-half of the monthly rent for the remainder of the lease. Is Marshall required to pay? Group of answer choices No if he disaffirmed the contract within a reasonable time of him turning the age of majority No because they were not getting along Yes because minors can never disaffirm once they are the age of majority Yes because they had a valid agreement
Marshall may not be required to pay if he disaffirmed the contract within a reasonable time after turning *. In California, minors can disaffirm contracts upon reaching the age of majority, provided it's done timely.
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Same scenario with John and Kirsten-- What defenses might Marshall use to defend this suit? Group of answer choices He was a minor Failure to mitigate damages There was no consideration Both A and B
Marshall might use the following defenses to defend the suit:
- He was a minor
- Failure to mitigate damages
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Same scenario with John and Kirsten--   What type of lease are they in? Group of answer choices Tenancy at sufferance At will Term of years Periodic
Hi there! Given the information provided, John and Kirsten are most likely in a "Term of years" lease. This type of lease has a specific duration (in this case, nine months).
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An aunt saw her eight-year-old nephew enter the room, remarked what a nice boy he was, and said, “I would like to take care of him now.” She promptly wrote a note, promising to pay the boy $*,* upon her death as long as he doesn't commit crimes. Her estate refused to pay. Is it obligated to do so? Group of answer choices No Yes
The estate is likely not obligated to pay. In California, for a promise to be enforceable, there generally needs to be consideration (something of value exchanged). Merely promising to be a "nice boy" or not commit crimes, which are already societal expectations, may not constitute sufficient consideration.
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Same scenario above with the aunt-- What is the strongest argument against the aunt's estate having to pay? Group of answer choices Unconscionability She is deceased He is a minor Preexisting duty rule
The strongest argument against the aunt's estate having to pay is:
- Preexisting duty rule
This rule states that if someone is already legally required to do something (like not commit crimes), promising to do that does not constitute valid consideration for a new contract.
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Same scenario above with the aunt-- What is the strongest argument against the aunt's estate having to pay? Group of answer choices Unconscionability She is deceased He is a minor Preexisting duty rule
The strongest argument against the aunt's estate having to pay is the Preexisting duty rule. This rule states that if a person is already legally obligated to perform a certain duty, a promise to perform that duty cannot be used as consideration for a contract. Since the boy is already expected by law to not commit crimes, there is no additional consideration for the aunt's promise.
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The purchaser of a business insisted on putting this clause in the sales contract: The seller would not work for anyone else, for five years, “anywhere in the United States, the continent of North America, or anywhere else on Earth.”  Group of answer choices This is an adhesion contract This is a valid exculpatory clause This is an invalid limitation of liability clause This will likely be unenforceable because it is not limited in scope, duration, and geography
This will likely be unenforceable because it is not limited in scope, duration, and geography.
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Norv owned a Ford dealership and wanted to expand by obtaining a BMW outlet. He spoke with Jackson and other BMW executives on several occasions. Norv now claims that those discussions resulted in an oral contract that requires BMW to grant him a franchise, but the company disagrees. Norv’s strongest evidence of a contract is the fact that Jackson gave him forms on which to order BMWs. Jackson answered that it was his standard practice to give such forms to prospective dealers, so that if the franchise were approved, car orders could be processed quickly. What priniciple does their use of pre-printed forms bring to mind? Group of answer choices UCC Merchant's exception Battle of the forms Merchantability
The principle that comes to mind with the use of pre-printed forms is the "Battle of the Forms." This concept is related to the Uniform Commercial Code (UCC) and addresses situations where businesses exchange standard forms with differing terms during contract negotiations.
Do you have any further questions about the "Battle of the Forms" or need more information on this specific scenario?
Pizza of Gaithersburg, Maryland, owned five pizza shops. Pizza arranged with Virginia Coffee Service to install soft drink machines in each of its stores and maintain them. The contract made no mention of the rights of either party to delegate. Virginia Coffee delegated its duties to the Macke Co., leading to litigation between Pizza and Macke. Pizza claimed that Virginia Coffee was barred from delegating because Pizza had a close working relationship with the president of Virginia Coffee, who personally kept the machines in working order. The contract is likely governed by: Group of answer choices UCC Common law Penal Code Federal Law   Flag question: Question * Question *
The contract is likely governed by the UCC (Uniform Commercial Code), specifically because it involves a transaction of goods (the soft drink machines) and their maintenance, which falls under the UCC's scope.
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Same pizza scenario from above:   Was the delegation legal? Group of answer choices No because the contract didn't say they could delegate No because there was a special interest in personal performance Yes because there was a novation Yes because the contract did not prohibit such delegation
The delegation was likely legal because the contract did not prohibit such delegation. In the absence of a specific prohibition against delegation within the contract, the delegation would typically be allowed under the UCC.
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Same pizza scenario from above:   Was the delegation legal? Group of answer choices No because the contract didn't say they could delegate No because there was a special interest in personal performance Yes because there was a novation Yes because the contract did not prohibit such delegation
The delegation was likely legal because the contract did not prohibit such delegation. Under the UCC, unless a contract explicitly restricts delegation, duties can be delegated.
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A negotiated, pre-agreed amount of damages in a contract is called Group of answer choices damages clause retainer clause payment clause liquidated damages clause
The correct term for a negotiated, pre-agreed amount of damages in a contract is a liquidated damages clause.
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The government is allowing people who identify as males to apply for a job but will not allow people who identify as females to apply for the job. In order to do this the government must show Group of answer choices its actions are narrowly tailored to meet an important interest substantially related to a compelling interest narrowly tailored to meet a compelling interest substantially related to an important interest
The government's action must be "substantially related to an important interest." This standard is used for gender discrimination cases in the United States, including California. It requires the government to show that the gender-based classification serves an important government objective and that the discriminatory means are substantially related to achieving that objective.
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The government is allowing people who identify as males to apply for a job but will not allow people who identify as females to apply for the job. In addition to meeting the proper scrutiny test, order to do this the government must also show Group of answer choices males are better at the job females are better at the job being male is a bonafide occupational qualification females would be put in dangerous positions if they took the job
To justify gender-based job restrictions, the government must show that being male is a bona fide occupational qualification (BFOQ). This means that the requirement is essential to the job and not based on stereotypes.
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The warrant exception that allows the government to search you momentarily while the police conduct their investigation is called Group of answer choices plain view stop and frisk detain and search grab area
The warrant exception that allows the government to search you momentarily while the police conduct their investigation is called "stop and frisk." This is based on reasonable suspicion of criminal activity.
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Unlike defamation, false light requires constitutional malice for all parties, regardless of whether they are public or private citizens.  Group of answer choices True False
False. In California, false light claims do not always require the plaintiff to prove constitutional malice unless the plaintiff is a public figure. Private individuals need only prove negligence.
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Negligence per se is a shortcut to negligence that requires the plaintiff to show the injury generally only occurs from negligence and the thing that caused the injury was in the defendant's exclusive control.  Group of answer choices True False
False. Negligence per se is a shortcut to proving negligence, but it specifically requires the plaintiff to show that the defendant violated a statute designed to protect against the type of harm that occurred, and that the violation was the proximate cause of the injury.
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If a homeowner does not want to be legally responsible for injuries suffered on their property by an adult trespasser, the homeowner should Group of answer choices warn of known, hidden dangers warn of attractive nuisances refrain from intentionally creating hidden dangers keep the property in safe conditions at all times
A homeowner in California should refrain from intentionally creating hidden dangers. Homeowners generally owe a minimal duty of care to trespassers, mainly to avoid willful or wanton harm.
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A 13th month subscription for water bottles delivery service at $* dollars per month. (You primarily need the water bottles and the delivery is just an extra bonus that isn't really needed) Group of answer choices is an enforceable oral agreement must be in writing because it cannot be completed within one year must be in writing because it is for goods worth $* or more both b and c
The subscription agreement would likely need to be in writing because:
- It cannot be completed within one year.
- It is for goods worth $* or more.
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Celine and Marco entered into an agreement whereby Marco was supposed to drive Celine to the airport in exchange for $*. Marco was supposed to pick up her up on Tuesday at * am. When they discussed it, Celine informed him that time is of the essence because she needed to be on time to catch a flight. She further told him that if she missed the flight, she would miss out on a $*,* business opportunity. They also agreed if Marco breached, he would pay $*,* in liquidated damages. When they wrote out the contract, they included everything they discussed except that Celine forgot to include the time is of the essence clause. Marco showed up to pick Celine up on Tuesday, but at *:* am. Celine missed her flight.  Marco has Group of answer choices breached the contract substantially performed partially performed created an accord and satisfaction
Marco has breached the contract. Even though the "time is of the essence" clause was not included in the written contract, it was clearly communicated and understood as a critical term of their agreement. Celine's loss of the business opportunity and the specified liquidated damages further support the breach.
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Same scenario with Marco and Celine-   Whether she did or didn't, assuming that Celine won, would the liquidated damages clause be enforceable? Group of answer choices Yes No Yes as long as it was a reasonable estimate of the actual damages No because liquidated damages can't be more than the total value of the contract
Yes, as long as it was a reasonable estimate of the actual damages. Liquidated damages clauses are enforceable in California if the amount specified is a reasonable forecast of compensatory damages in the event of a breach and not a penalty.
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Same scenario with Marco and Celine-   Celine mentioned that she would miss out on a $*,* business opportunity if Marco breached. If Celine seeks to recover $*,* on those grounds, what do we call that type of damages? Group of answer choices special damages restitution damages expectation damages equitable damages
Those damages are called "special damages." Special damages refer to compensation for quantifiable monetary losses experienced due to a breach of contract or wrongdoing.
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Same scenario with Marco and Celine-   Whether it is or isn't, assume that a court found that the time is of the essence clause is part of the agreement, has Marco breached the agreement? Group of answer choices Yes No
Yes, Marco has breached the agreement. If the court finds that the "time is of the essence" clause is part of the agreement, Marco's late arrival at *:* am constitutes a breach, especially since Celine emphasized the importance of punctuality due to her $*,* business opportunity.
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Same scenario with Marco and Celine- If a court found that the time is of the essence clause is NOT part of the agreement, it likely would be because Group of answer choices he substantially performed there was no breach statute of frauds the written agreement is a full integration
If a court found that the "time is of the essence" clause is NOT part of the agreement, it likely would be because the written agreement is a full integration. This means the written contract is considered complete and final, excluding any prior or contemporaneous agreements not included in the document.
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Same scenario with Marco and Celine-   Instead, let's say that Marco called Celine on Monday and told her unequivocally that he would no longer be able to pick her up Tuesday morning. Marco has committed Group of answer choices material breach anticipatory repudiation predetermined breach breach of strict performance
Marco has committed anticipatory repudiation. This occurs when one party to a contract informs the other party in advance that they will not be able to fulfill their contractual duties.
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Same scenario with Marco and Celine- What type of damages would neither of them be able to recover if a lawsuit ensues? Group of answer choices expectation punitive special liquidated
In a lawsuit between Marco and Celine, neither of them would be able to recover *punitive* damages. Punitive damages are generally not awarded in breach of contract cases unless there is evidence of malicious or fraudulent conduct.
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Which is not a way to terminate an offer Group of answer choices novation lapse destruction of subject matter counteroffer
Novation is not a way to terminate an offer. Here are the ways an offer can be terminated:
- Lapse
- Destruction of subject matter
- Counteroffer
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Respondiate superior is a shortcut to negligence that essentially means "the thing speaks for itself." Group of answer choices True False
False. Respondeat superior is a legal doctrine holding employers liable for the actions of their employees if such actions occur within the scope of employment. The phrase "the thing speaks for itself" refers to res ipsa loquitur, which is a separate legal principle used to imply negligence based on the nature of the accident.
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