Fact Pattern 10-2
In selling a commercial building, Riley tells Sam 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 10-2. Under these circumstances, Sam's best course of action is most likely to
A) scam Riley.
B) induce Riley to give him the commission on her next sale.
C) recover damages or rescind the contract to buy the building.
D) sabotage Riley's career with bad publicity.

Question

Fact Pattern 10-2 
In selling a commercial building, Riley tells Sam 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 10-2. Under these circumstances, Sam's best course of action is most likely to
A) ​scam Riley.
B) ​induce Riley to give him the commission on her next sale.
C) ​recover damages or rescind the contract to buy the building.
D) ​sabotage Riley's career with bad publicity.

Quizplus · Accepted Answer

Sam can seek to recover damages from Riley for negligent misrepresentation or rescind the contract to buy the building. Scamming Riley or sabotaging his career with bad publicity would not be appropriate or legal actions to take. Inducing Riley to give him a commission on future sales would not address the issue of the misrepresentation and would not be a fair remedy for Sam.