Ed knows that his basement leaks, but doesn't disclose this is Sally, the buyer. Ed also instructed his agent to keep the information confidential. After the sale closes, Sally finds out that the basement leaks, and she sues for fraud and misrepresentation. Sally can sue:
A. the listing agent only
B. the seller only
C. both the listing agent and the seller
D. no one, under the doctrine of caveat emptor
Answer: C. both the listing agent and the seller
In this example, both the seller and the listing agent acted to conceal a latent defect from a buyer, and they both may be liable to the buyer for damages.
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Which of the following is not a rule of construction used by courts to determine the terms of a contract?
a. Ambiguous language is construed in favor of the party who drafted the contract. b. Special provisions prevail over general provisions. c. Handwritten provisions prevail over typewritten provisions d. The law of the state where the contract was made is considered part of the contract.
Devon is in the market for a new car. She is seriously considering either a Honda Civic or Toyota Corolla because they both have excellent quality and safety ratings and are comparable in price
Devon is in the ________ stage of the buyer decision process. A) evaluation of alternatives B) need recognition C) information search D) purchase decision E) postpurchase behavior