An Employee Prepared an Appraisal of a Property for His

question 131

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.Given these facts,which of the following is true?

• A) Mr. Jones could not take any action because he had no contract with the company or the appraiser.
• B) A person cannot be sued for words that cause loss, only for actions that cause physical injury.
• C) If Jones sues the appraiser, he cannot also sue the employer company; he can only sue one or the other.
• D) The cause of action most likely to be taken by the investor is defamation.
• E) 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.

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Definitions:

Ergs

A unit of energy in the centimeter-gram-second (CGS) system, used to measure the amount of work or energy.

Proprium

Encompasses all aspects of an individual's self or identity as defined by psychologist Gordon Allport.

Self

The individual's perception of their identity, including traits, beliefs, and personal history, forming the basis of one's personality and self-concept.

Allport

Gordon Allport was a pioneering psychologist known for his theory of personality traits, emphasizing the uniqueness of the individual and the importance of the present context for understanding behavior.