Skylar,an antique dealer,intentionally represents the value of an antique chest of drawers as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is actually worth $2,500.In a state that uses the "benefit-of-the-bargain" rule,Margaret's damage award would be:

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Quizplus · Accepted Answer

The "benefit-of-the-bargain" rule means that Margaret is entitled to the difference between the actual value of the chest of drawers ($2,500) and the price she paid for it ($5,500), which is $3,000. But since Skylar intentionally misrepresented the value, Margaret is also entitled to recover the difference between the represented value ($6,000) and the actual value ($2,500), which is an additional $3,500. Therefore, Margaret's total damage award would be $3,500.

Skylar,an Antique Dealer,intentionally Represents the Value of an Antique Chest