The correct options are as follows:
1.THE ACTIONS OF THE ROBINSON ARE FRAUDULENT.
In law, a fraudulent action is any action that involves using lies or dishonesty to obtain the desired results from the other party. The actions of the Robinson are fraudulent because they know quite well that they may not be able to sell the house at all, because of the foundational fault which the house has. They cover up this vital information during the selling transaction without telling the buyers about it at all. In the process, they sell the house for an amount that is well above the worth of the house.
2. Failure to disclose the crack in the foundation of the house is a material fact in the transaction.
In law, a material fact refers to a fact that if known, it might cause the buyer of a property to change his mind about buying the property. If the buyer of the Robison's house have known that there is a crack in the foundation of the house, they would not have buy the house at all, thus, this fact is a material fact that was not included in the transaction.
3. ELEMENTS OF FRAUDULENT MISREPSENTATION
The elements of fraudulent misrepresentation are as follows:
1. A representatiion that was made.
2. The representation was false.
3. When the representation was made, it was known that the representation was false or it was made recklessly without the knwoledge of the truth.
4. The representation was made with the intention that the other party would depend on it.
5. The other party depend on the false representation.
6. The affected party suffered damages as a result of depending on the representation.
All the elements of fraudulent misrepresentation listed above are applicable to the case of Robinson and the buyer of their house.