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. On learning the truth, Sam confronts Riley, who says he was not trying to fool Sam-he was only trying to make a sale. This is
A) a mistake of value.
B) a valid defense to a charge of fraud.
C) misrepresentation.
D) unconscionable.

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. On learning the truth, Sam confronts Riley, who says he was not trying to fool Sam-he was only trying to make a sale. This is​
A) ​a mistake of value.
B) ​a valid defense to a charge of fraud.
C) ​misrepresentation.
D) ​unconscionable.

Quizplus · Accepted Answer

Riley's statement about the capacity of the building was false and Riley knew it was false. This constitutes misrepresentation. Riley's motive for making the false statement is irrelevant to whether or not it is misrepresentation.