Multistate Bar Examination Practice Question

Fraud requires either a false representation of a material fact with intent to deceive or, in some cases, failure to disclose a fact where there is a duty to disclose. In this scenario, the seller’s silence does not constitute fraud because, absent a direct question, most courts require a fiduciary or special relationship to impose a duty of disclosure. If the seller had actively concealed the defect or made false statements, the analysis would change. The other answers confuse situations involving false representation or active concealment, which are not applicable here.