Crucial Exams

Multistate Bar Examination Practice Question

A contractor approached a business owner about renovating the business's office building. The contractor stated that the renovation materials would be sourced from a premium supplier known for high-quality products. In fact, the contractor knowingly planned to use substandard materials from a cheaper, lesser-known supplier and completed the job with those materials. A year later, significant structural problems appear, and the business owner sues the contractor for intentional (fraudulent) misrepresentation.

To prevail, which elements must the business owner prove?

  • The contractor knowingly made a false statement of material fact with the intent that the business owner rely on it, the business owner justifiably relied on the statement, and that reliance caused damages.

  • The contractor's failure to disclose the source of the materials, without more, automatically establishes liability for misrepresentation.

  • The claim fails because the business owner could have independently investigated the materials instead of relying on the contractor's statements.

  • The contractor intended to cause economic harm by the false statement and the business owner suffered damages as a result.

Multistate Bar Examination
Torts
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