Barbara, an antique dealer, intentionally misrepresents 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 worth $2,500. In a state that uses the "out-of-pocket" rule, Margaret's damage award would be:

Question

Quizplus · Accepted Answer

Under the "out-of-pocket" rule, damages are calculated as the difference between the price paid and the actual value. Margaret paid $5,500 for an item worth $2,500, so her damages are $5,500 - $2,500 = $3,000.

Barbara, an Antique Dealer, Intentionally Misrepresents the Value of an Antique