STUDY QUESTIONS RE: MISREPRESENTATION TORTS


  1. The Misrepresentation Torts (General Background Questions)
  2. Fraud (a.k.a. "Deceit")
  3. Negligent Misrepresentation
  4. Innocent Misrepresentation


  5. THE MISREPRESENTATION TORTS
     

    INSTRUCTIONS: Type your Answer responses in the "Boxes" which correspond to each of the Questions infra. When you are ready, "Submit" your Responses by "clicking on" the appropriate button to transmit your answer to Professor Martin. If the electronic transmission was successful, you will receive a message on the screen confirming that your "Answer" was received by Professor Martin. You will also have the option of PRINTING a copy of the "Answer" which you sent for your own records.

    IN GENERAL

    (1)(a). Is an affirmative statement by the defendant required in order to "misrepresent" a fact? In other words, can the defendant be held liable for a "misrepresentation" even when he or she has made no actual "misrepresenting" statement of fact?

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    (1)(b). What about the traditional common law doctrine of caveat emptor? How does this apply with respect to the seller's "duty" to disclose facts about the subject matter of a sales transaction that are known to him or her (but which may be unknown to the buyer)?

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    (1)(c). Can an opinion ever become the basis for imposing liability for a "misrepresentation?"

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    (1)(d). How is the Tort of "Fraud" different from the other "misrepresentation" theories? BE SPECIFIC as to any differences regarding the prima facie requirements for imposing liability under each theory, as well as any differences in damages which may be recovered under each theory and the affirmative defenses which may be asserted under each theory.

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    (1)(e). What exactly is the seller in Watson alleged to have done to fraudulently "misrepresent" the condition of the roof?

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    (1)(f). If the Plaintiff in Watson had actually read the insurance records showing that the warehouse roof had sustained previous wind damage (which records also showed that the insurance company had paid for "repairs") would this additional proof have been susficient to sustain liability for Plaintiff's action based upon "Fraud?"

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    (1)(g). Upon what legal theory did the court in impose liability against the Defendant? What specific measure of damages did the court award to the Plaintiff in VMark?

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    (1)(h). In the VMark case, the Plaintiff asserted claims for both "Misrepresentation" and "Breach of Contract." Can both of these actions co-exist in a single case?

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    (1)(i). In footnote no. 5 of the edited opinion in the VMark case, the court sets forth the elements for the Tort of "Fraud" under Massachusetts law. Where is the requirement of "scienter?" Does Massachusetts not require "scienter?"

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    NEGLIGENT MISREPRESENTATION
     

    INSTRUCTIONS: Type your Answer responses in the "Boxes" which correspond to each of the Questions infra. When you are ready, "Submit" your Responses by "clicking on" the appropriate button to transmit your answer to Professor Martin. If the electronic transmission was successful, you will receive a message on the screen confirming that your "Answer" was received by Professor Martin. You will also have the option of PRINTING a copy of the "Answer" which you sent for your own records.

    APPLICABILITY OF "NEGLIGENT MISREPRESENTATION" TO THIRD PARTIES (NOT IN PRIVITY)

    (2)(a). In the Tort of "Negligent Misrepresentation" maintained on behalf on third parties who are not in privity with the defendant, does it make any sense to apply a more restrictive interpretation with regard to the meaning of "foreseeability"? Explain why (or why not).

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    (2)(b). How does the Court in the Bily case deal with the issue of "foreseeability" within the context of actions for "Misrepresentation" brought by third parties who are not in privity with the defendant?

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    INNOCENT MISREPRESENTATION
     

    INSTRUCTIONS: Type your Answer responses in the "Boxes" which correspond to each of the Questions infra. When you are ready, "Submit" your Responses by "clicking on" the appropriate button to transmit your answer to Professor Martin. If the electronic transmission was successful, you will receive a message on the screen confirming that your "Answer" was received by Professor Martin. You will also have the option of PRINTING a copy of the "Answer" which you sent for your own records.

    THE TORT(S) OF "INNOCENT MISREPRESENTATION"

    (3)(a). What are the specific requirements (and limitations) in regard to actions based upon the Tort of "Innocent Misrepresentation" maintained pursuant to Restatement (Second) of Torts, Section 552C? BE SPECIFIC.

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    (3)(b). What are the specific requirements (and limitations) in regard to actions based upon the Tort of "Innocent Misrepresentation" maintained pursuant to Restatement (Second) of Torts, Section 402B? BE SPECIFIC.

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    (3)(c). Are BOTH Tort actions (i.e., Section 552C and section 402B) really necessary? Does either of these Torts protect some interest of the plaintiff that is unprotected by any other Tort action? Explain.

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