Question 10

This is an example of negligent misrepresentation.

Negligent misrepresentation occurs when a party provides false information without due care to verify its accuracy. In this case, Agent Lianne failed to identify significant issues with the foundation and misled Buyer Todd by stating there were no problems.

A) concealment

Concealment involves intentionally hiding or failing to disclose information that one has a duty to reveal. In this scenario, Agent Lianne did not intentionally hide the cracks; instead, she simply overlooked them during her inspection, which does not constitute concealment.

B) fraud

Fraud requires an intentional act to deceive another party for personal gain. While Agent Lianne's statement was inaccurate, there is no indication that she intended to deceive Buyer Todd or benefit from the misrepresentation, which makes fraud an inappropriate label for this situation.

C) negligent misrepresentation

Negligent misrepresentation applies here as Agent Lianne provided false information regarding the foundation's condition without exercising the necessary care to inspect it thoroughly. This failure to notice the cracks demonstrates a lack of due diligence in her duties.

D) intentional misrepresentation

Intentional misrepresentation occurs when someone knowingly provides false information with the intent to deceive. In this case, Lianne's failure to notice the cracks was not a deliberate act; thus, it does not fit the definition of intentional misrepresentation.

Conclusion

Negligent misrepresentation is the most accurate description of Agent Lianne's conduct, as she failed to conduct a proper inspection and misled Buyer Todd based on her oversight. Other options such as concealment, fraud, and intentional misrepresentation do not apply because they involve elements of deceit or intention that were not evident in this situation.