LAW 122 Lecture Notes - Lecture 3: Punitive Damages, No Liability, Risk Management Tools
21 Dec 2016
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Defendant makes a false statement which they know to be untrue, with which they intend to mislead the plaintiff and which causes the plaintiff to suffer a loss. Abby is interested in purchasing house of clarence. Abby asks if there have been any water that gets into the house in heavy rain. However, there was a previous flood in the basement that required carpet to be replaced. Abby buys the house and discovers that there is mold growing in the basement due to water damage, and has to have the mold removed and new flooring installed. Abby would have found out about the issue if she had an inspection done. Risk management tools may be used or not based on the product and the level of risk present. Defendant directors of co. (peek) issued a prospectus, which contained a false statement that it had obtained government authorization but had not yet received the authorization.
