Fact Pattern 13-4 In selling a warehouse, Riley tells Sam that he knows that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building.
Refer to Fact Pattern 13-4. Riley's knowledge that facts were falsely represented to Sam is known as

Question

Fact Pattern 13-4 In selling a warehouse, Riley tells Sam that he knows that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building.
Refer to Fact Pattern 13-4. Riley's knowledge that facts were falsely represented to Sam is known as

Quizplus · Accepted Answer

Scienter refers to the knowledge of the falsehood of a representation, indicating an intent to deceive. Riley's statement about the capacity, knowing he has no basis for it, demonstrates scienter.

Fact Pattern 13-4 in Selling a Warehouse, Riley Tells Sam