An Employee Prepared an Appraisal of a Property for His

question 55

Multiple Choice

An employee prepared an appraisal of a property for his real estate development company.The employee had been told that the appraisal would be used by the company to attract a potential investor,Mr.Jones,for the company's client,Mr.Lee.Because the appraiser carelessly forgot to check the recent changes in the zoning by-laws,the appraisal was not accurate.Mr.Jones was misled about the value of the land and suffered a financial loss of $20 000.On these facts,which of the following is true?

• A)To win in an action against the appraiser,Jones must prove that the appraiser owed him a duty of care,fell below the standard of care owed,and thereby caused him a foreseeable loss because of his reliance on the information.
• B)Jones could not take any action because he had no contract with the company or the appraiser.
• C)A person cannot be sued for words that cause loss,only for actions that cause physical injury.
• D)If Jones sues the appraiser,he cannot also sue the employer.
• E)The cause of action most likely to be taken by the investor is defamation.

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Definitions:

Placebo Group

In drug research, a group given an inert substance to assess the psychological effect of receiving a treatment.

Experimenter Expectancy Effect

The influence that the researcher's expectations can have on the outcome of a study, potentially biasing the results.

Floor Effect

Failure of a measure to detect a difference because it was too difficult.

Paper-and-pencil Questionnaire

A traditional survey method where participants respond to questions written on paper by physically marking their answers.