BLAW 3310 Exam 2 Prep (2025/2026) | Business
Law, Fraud, Product Liability, Property & Deeds |
Verified Q&A
Fraud is an ___ ___ of a material fact designed to induce the person receiving the
miscommunication to rely upon it to her detriment, so that a loss is suffered.
intentional misrepresentation
When misrepresentation is an intentional tort, there must be ___.
proof
Scienter:
Latin for "knowingly;" usually meaning that the defendant knew that the act in question was
illegal.
Privity:
a legal relationship between parties, such as between parties to a contract.
Damages:
the losses suffered by the plaintiff resulting from reliance on the fraud.
Lightle v. Real Estate Commission:
-The Alaska high court held that the claim of fraudulent misrepresentation against Lightle was
justified because Lightle knowingly passed false information.
-The real estate agent was sued for fraudulent misrepresentation.
-The "intent to cause economic loss by foreseeable persons" was not an element of fraudulent
misrepresentation noted by the court.
-The claim of fraudulent misrepresentation was justified because Lightle made a partial
disclosure that failed to reveal facts that "might have affected the recipient's conduct in the
transaction in hand."
Interference with contract:
, a tort in which there is a valid contract, and the defendant knew of the contract but
intentionally caused a breach of the contract, resulting in damages to the plaintiff. The party
who suffers the breach may sue both the party who breached the contract for breach and the
wrongdoer for the tort of interference with contract.
Rule of Caveat Emptor:
"Let the buyer beware." Requires the buyer examine, judge, and test the product himself. If a
product is not safe and there is an injury, the loss falls on the consumer.
MacPherson v. Buick Motor Company:
Eliminated the privity requirement and held a manufacturer liable in tort for negligence for a
product related injury to a consumer despite the lack of privity.
Strict Liability:
in tort a legal theory that imposes responsibility for damages regardless of the existence of
negligence; in tort law, any good sold that has a defect that causes injury leads to the imposition
of liability.
Strict liability under contract law is based on the relationship between the injured party and
the manufacturer because of the existence of a ___.
warranty
Requirements to establish a cause of action for strict liability in tort:
-The product was defective
-The defect created an unreasonably dangerous product
-The defect was the proximate cause of or a substantial factor in bringing about the injury
-The injury caused damages
Under strict liability, any seller of the defective product (manufacturer, wholesaler, retailer) is
___, regardless of negligence and regardless of knowledge of the defective condition of the
product.
LIABLE
Primary areas of product liability law:
-Manufacturing defect
-Failure to warn
-Design defects
-Unknown hazards
Law, Fraud, Product Liability, Property & Deeds |
Verified Q&A
Fraud is an ___ ___ of a material fact designed to induce the person receiving the
miscommunication to rely upon it to her detriment, so that a loss is suffered.
intentional misrepresentation
When misrepresentation is an intentional tort, there must be ___.
proof
Scienter:
Latin for "knowingly;" usually meaning that the defendant knew that the act in question was
illegal.
Privity:
a legal relationship between parties, such as between parties to a contract.
Damages:
the losses suffered by the plaintiff resulting from reliance on the fraud.
Lightle v. Real Estate Commission:
-The Alaska high court held that the claim of fraudulent misrepresentation against Lightle was
justified because Lightle knowingly passed false information.
-The real estate agent was sued for fraudulent misrepresentation.
-The "intent to cause economic loss by foreseeable persons" was not an element of fraudulent
misrepresentation noted by the court.
-The claim of fraudulent misrepresentation was justified because Lightle made a partial
disclosure that failed to reveal facts that "might have affected the recipient's conduct in the
transaction in hand."
Interference with contract:
, a tort in which there is a valid contract, and the defendant knew of the contract but
intentionally caused a breach of the contract, resulting in damages to the plaintiff. The party
who suffers the breach may sue both the party who breached the contract for breach and the
wrongdoer for the tort of interference with contract.
Rule of Caveat Emptor:
"Let the buyer beware." Requires the buyer examine, judge, and test the product himself. If a
product is not safe and there is an injury, the loss falls on the consumer.
MacPherson v. Buick Motor Company:
Eliminated the privity requirement and held a manufacturer liable in tort for negligence for a
product related injury to a consumer despite the lack of privity.
Strict Liability:
in tort a legal theory that imposes responsibility for damages regardless of the existence of
negligence; in tort law, any good sold that has a defect that causes injury leads to the imposition
of liability.
Strict liability under contract law is based on the relationship between the injured party and
the manufacturer because of the existence of a ___.
warranty
Requirements to establish a cause of action for strict liability in tort:
-The product was defective
-The defect created an unreasonably dangerous product
-The defect was the proximate cause of or a substantial factor in bringing about the injury
-The injury caused damages
Under strict liability, any seller of the defective product (manufacturer, wholesaler, retailer) is
___, regardless of negligence and regardless of knowledge of the defective condition of the
product.
LIABLE
Primary areas of product liability law:
-Manufacturing defect
-Failure to warn
-Design defects
-Unknown hazards
