Dana Riley purchased a home in the Brentwood area of Los Angeles. After she purchased the home, she learned that the home had been the residence of a long-time drug dealer. She experienced many late-night visitors and often noticed cars parked outside near the street curb with the drivers and passengers studying the home. The former owner has been convicted of drug charges. Dana has become uncomfortable with the visitors and the surveillance. She just wants out of the house. Suppose that the listing agent was aware of the home's history and the drug dealer's arrest and conviction. The agent told the neighbors to cooperate by not disclosing any information to Dana. Look, the agent told them, you can get the house sold and keep your values up or let it sit there and have the old druggies come by and destroy it. Which of the following statements is true?
A) The real estate agent has committed fraud.
B) The real estate agent is under no obligation to disclose the information.
C) The most the real estate agent has committed is misrepresentation.
D) None of the above
Question 2
A partnership by estoppel:
A) is the same as a partnership by implication.
B) results when third parties are led to believe a partnership exists.
C) is the same as a joint venture.
D) None of the above
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