Business Law 13th Edition by Frank Cross, Kenneth Clarkson, Roger LeRoy Miller

Exercise 9

Misrepresentation. Charter One Bank owned a fifteen-story commercial building. A fire inspector told Charter that the building's drinking-water and firesuppression systems were linked. Without disclosing this information, Charter sold the building to Northpoint Properties, Inc. Northpoint spent $280,000 to repair the water and fire-suppression systems and filed a suit against Charter One. Is the seller liable for not disclosing the building's defects? Discuss. [Northpoint Properties, Inc. v. Charter One Bank, 2011-Ohio-2512 (Ohio App. 8 Dist. 2011)] (See page 293.)