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

The "out-of-pocket" rule states that the damages awarded are the difference between the amount paid and the actual value of the item. In this case, Margaret paid $5,500 but the actual value was $2,500. Therefore, her damages are $3,000 ($5,500 - $2,500).

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