[Disgruntled Buyer] Ciaran Lived in His Home for Five Years

question 43

Multiple Choice

[Disgruntled Buyer] Ciaran lived in his home for five years without doing any upkeep of any type. He was aware that the roof leaked, that he had defective piping, and that the air conditioning did not work, among other problems. He sold the home to Luisa. He did not tell her anything about the problems with the house. Shortly after Luisa moved in, there was a thunderstorm resulting in water streaming down from the ceiling. Within a few weeks of her moving in, pipes began to burst resulting in significant water damage. The air conditioner also failed to work when she turned it on for the first time. Luisa demanded that Ciaran refund her purchase price and take back the house. Ciaran sent her a letter providing as follows:
Dear Luisa,
Caveat emptor. You have marketable title.
Regards, Ciaran
Luisa is furious and wants to sue.
-Which of the following best describes any duty Ciaran owed to Luisa prior to the sale?

• A) In most states, Ciaran only had a duty to warn Luisa about any defects he knew about that a reasonable buyer would not have been able to discover through a thorough examination of the property.
• B) In most states, Ciaran had a duty to warn Luisa about any defects in the property regardless of whether they could have been discovered through a thorough examination of the property.
• C) In most states, Ciaran had a duty to warn Luisa about any defects he knew about that a reasonable buyer would not have been able to discover through a thorough examination of the property and that materially affected the value of the property.
• D) In most states, Ciaran had no duty to warn Luisa of anything.
• E) In most states, Ciaran had no duty to warn Luisa of anything so long as she had her own home inspection done.

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Definitions:

Apportioned

Divided and distributed in proportions or specific amounts according to a defined scheme or calculation.

Perfect Tender Rule

A legal principle under the Uniform Commercial Code that requires sellers to deliver goods to buyers exactly as specified in their contract, without any deviations.

Tender Of Performance

An offer by one party involved in a contract to perform their obligation, demonstrating readiness to fulfill the terms of the contract.

C.O.D. Shipment

Delivery method where payment is collected at the time of delivery rather than in advance.