Question 1

If a fiduciary relationship exists between the plaintiff and defendant, or if the defendant purports to have special knowledge, the plaintiff may be justified in relying on the defendant's opinion.

Accepted Answer

In a fiduciary relationship, the plaintiff places trust and confidence in the defendant, who has a duty to act in the plaintiff's best interest. If the defendant claims to have special knowledge, this also justifies the plaintiff's reliance on the defendant's opinion, as the plaintiff is depending on the defendant's expertise or knowledge.

Question 2

If a defendant makes an opinion implying that no facts incompatible with that opinion exist (when in fact the defendant knows they do), he or she can be liable for misrepresentation.

Accepted Answer

When a defendant expresses an opinion but is aware of facts that would render that opinion misleading or false, and implies that no incompatible facts exist, this can indeed constitute misrepresentation. This is because the defendant is presenting an opinion in a manner that deceives the other party, implying a factual basis for the opinion that they know to be false or misleading.

Question 3

A person who makes a negligent misrepresentation is liable to anyone whom he or she reasonably expects to learn about the misrepresentation.

Accepted Answer

The answer of A person who makes a negligent misrepresentation...

Question 4

The number of persons expected to be reached by a negligent misrepresentation must be limited.

Accepted Answer

Negligent misrepresentation requires that the misrepresentation is made to a specific person or a limited group of persons, rather than to the public at large, as the duty of care is owed to those whom the statement was intended to reach or influence.

Question 5

Manufacturers can be strictly liable for misrepresentations made in the course of advertising.

Accepted Answer

Manufacturers can be held strictly liable for misrepresentations made in the course of advertising if those misrepresentations lead to consumer harm, as it falls under the broader legal concept of product liability.

Question 6

Under modern law, if an architect supplies erroneous specifications to a builder, a subcontractor who relies on those specifications will not be able to sue the architect for misrepresentation because the specifications were not given to him or her personally.

Accepted Answer

Under modern law, third parties such as subcontractors who rely on the specifications and suffer damages due to their inaccuracies may have a claim against the architect for negligent misrepresentation, even if the specifications were not given to them personally. This is because the architect owes a duty of care to foreseeable users of the specifications.

Question 7

Plaintiffs are not entitled to rely on the opinions of others even if an opinion is expressed by a disinterested party.

Accepted Answer

Plaintiffs can rely on the opinions of others, including those expressed by disinterested parties, especially if such opinions are relevant and can help establish facts or expert testimony in a case.

Question 8

The term nuisance has never been precisely defined by the courts.

Accepted Answer

The term "nuisance" has been used in legal contexts to describe a wide range of disturbances or harms, and its precise definition can vary depending on the jurisdiction and context. Courts have often defined nuisance on a case-by-case basis, considering the specific facts and circumstances of each case, rather than applying a single, precise definition.

Question 9

The courts are more likely to find misrepresentation if an undisclosed fact is a material one.

Accepted Answer

Misrepresentation often hinges on whether the undisclosed fact significantly affects the parties' decision-making; material facts, by definition, have this level of impact, making their nondisclosure more likely to be considered misrepresentation.

Question 10

Those who incorporate misstatements into commercial documents are liable to those who suffer as a result of justifiable reliance on those misstatements.

Accepted Answer

In many legal systems, individuals or entities that incorporate false statements or misstatements into commercial documents can be held liable if others suffer harm as a result of justifiably relying on those inaccuracies. This principle is rooted in the concepts of fraud, misrepresentation, and negligence, aiming to protect parties from harm caused by misleading information.

Question 11

Defendants can never be found liable for making predictions because predictions are considered opinions.

Accepted Answer

Predictions can sometimes lead to liability if they are presented as facts, are misleading, or if the person making them has a duty to provide accurate information and fails to do so.

Question 12

In some cases, a plaintiff may be justified in relying on a defendant's statement regarding the defendant's intentions.

Accepted Answer

In contract law and tort law, a plaintiff may be justified in relying on a defendant's statement regarding the defendant's intentions if the statement is a promise or representation that induces the plaintiff to take or refrain from taking a certain action, leading to reliance damages if the defendant fails to fulfill the stated intention.

Question 13

For purposes of intentional misrepresentation, a defendant is liable only to those whom he or she intended to influence by the misrepresentation.

Accepted Answer

A defendant can also be liable for intentional misrepresentation to those whom the defendant had reason to expect to act or to refrain from action on the basis of the misrepresentation, even if they were not the specific targets of the misrepresentation.

Question 14

For purposes of misrepresentation, arm's-length transactions require more disclosure than transactions involving those having a fiduciary relationship.

Accepted Answer

Arm's-length transactions typically require less disclosure than transactions involving fiduciary relationships, as fiduciary relationships involve a higher duty of care and trust.

Question 15

A defendant cannot be found liable for "puffing."

Accepted Answer

"Puffing" refers to exaggerated or hyperbolic statements made by a seller about a product's quality or the desirability of goods, which are considered opinion rather than factual representations. Because these statements are subjective and not meant to be taken literally, they generally do not form the basis of legal liability for fraud or misrepresentation.

Question 16

A plaintiff can recover for misrepresentation even if the plaintiff investigated the defendant's representations and relied totally on his or her investigation in deciding to rely on those representations.

Accepted Answer

A plaintiff typically cannot recover for misrepresentation if they conducted their own investigation and relied solely on that investigation, rather than on the defendant's representations, in making their decision.

Question 17

A defendant can be liable for an innocent misrepresentation if the defendant makes a material misrepresentation during the course of trying to close a sale.

Accepted Answer

Innocent misrepresentation occurs when a person makes a false statement they believe to be true, and if this misrepresentation is material and induces the other party to enter into a contract, the defendant can be held liable, even if there was no intent to deceive.

Question 18

To recover for misrepresentation, the plaintiff must prove that his or her losses were a reasonably foreseeable result of the misrepresentation.

Accepted Answer

For a plaintiff to recover damages for misrepresentation, they must demonstrate that their losses were a reasonably foreseeable consequence of the misrepresentation, as this establishes a causal link between the misrepresentation and the harm suffered.

Question 19

A defendant may never be liable for misrepresentation for making statements that are merely beliefs.

Accepted Answer

A defendant can be liable for misrepresentation if they present their beliefs as facts to induce someone into a contract or agreement, and those beliefs are either knowingly false or recklessly stated without regard to their truth.

Question 20

Historically, claims for negligent misrepresentation were not allowed.

Accepted Answer

Historically, claims for negligent misrepresentation were generally not recognized in common law, as liability for negligence was typically limited to physical harm and did not extend to economic loss or misinformation. Over time, legal systems evolved to recognize negligent misrepresentation under certain conditions, expanding the scope of negligence to include economic losses caused by false information provided negligently.

Quiz 10: Misrepresentation, Nuisance, and Other Torts