Question

The statutory cause of action differs from the common law only in that to recover actual damages, it does not require proof that the defendant made a material false representation knowing it to be false or made it recklessly as a positive assertion without any knowledge of its truth.

a. True
b. False

Answer 1

Answer:

The correct answer is letter "A": True.

Explanation:

There are different types of fraud laws that apply according to the state where the deceiving behavior took place. Among those types of laws, we can identify the Common Law Fraud Claim, Fraud in the Inducement Cause of Action, and the Statutory Fraud Law.  

The Statutory Fraud Law applies in real estate only when a misleading representation took place in an attempt to induce an individual to engage in a contract. To recover damages the statutory law does not require proof that the party accused made a misleading representation or acted without knowing harm could be caused by his or her actions. The Common Law Fraud Claim requires some sort of proof of the defendant's misrepresentation.