Question

Mark is a sales agent representing a seller under a listing agreement. Anna knows that the house has plumbing problems, and she hears the seller tell a buyer that the house has no problems. Which if the following is a TRUE statement regarding Mark's culpability if the buyer sues him for statutory fraud?

A) Mark is not liable because he did not make the statement, the seller did.
B) Mark is liable only under common law fraud, not statutory fraud.
C) Mark is not liable if he proves that he is the seller's agent.
D) Mark is liable if he stood to benefit from the misrepresentation.

Answer 1

Mark is liable if he stood to benefit from the misrepresentation.

Step-by-step explanation:

The correct answer is D) Mark is liable if he stood to benefit from the misrepresentation. In the scenario described, Mark is a sales agent representing the seller. Under the principle of agency law, Mark is considered the seller's representative, and any misrepresentations made by the seller can be attributed to Mark. If Mark stood to benefit from the misrepresentation, such as earning a commission on the sale, he can be held liable for statutory fraud.