84. A licensee represents the seller of a commercial property. The licensee tells the buyer a new highway exit ramp will be built within six months to give access to the property, although the licensee knows that is only one of several possibilities being considered by local planners. The exit ramp is subsequently located elsewhere. Could the licensee be liable to the buyer for the statement about the ramp?
Answer: D
Yes, the statement was a material misrepresentation.
The licensee could be liable to the buyer for the statement about the ramp because it constitutes a material misrepresentation. By asserting that a new highway exit ramp will be built within six months, the licensee presented information as fact while knowingly being aware that it was only one of several possibilities being considered.
A) No, the statement was the licensee's opinion.
This option is incorrect because the statement made by the licensee was presented as a factual claim rather than an opinion. The licensee explicitly stated that the ramp would be built, which indicates certainty, not a subjective viewpoint.
B) No, the licensee cannot be held liable for the planners' decision.
This option is also incorrect. Even though the final decision lies with the planners, the licensee's statement about the ramp was misleading and created an expectation based on false information. Liability can arise from misrepresentations regardless of the planners' decisions.
C) Yes, the statement was unjustifiable puffing.
This option is incorrect as it conflates marketing exaggeration with a factual misrepresentation. Unjustifiable puffing typically refers to vague or subjective claims that cannot be proven true or false, whereas the licensee presented a specific, factual assertion about the ramp's construction.
D) Yes, the statement was a material misrepresentation.
This option is correct because the licensee knowingly provided false information regarding the future construction of the ramp, which was a significant factor in the buyer's decision-making process. Such a misrepresentation can lead to legal liability as it affects the buyer's understanding of the property's value and potential.
Conclusion
The correct answer is D, as the licensee's statement about the exit ramp was a material misrepresentation, which can legally bind them to accountability for the information provided. All other options fail to recognize the implications of presenting false information as fact, especially when it directly influences a buyer's decision regarding a commercial property.