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Misrepresentation Case. After a few days use, Bianca discovered the Adventurer ZX was totally unsuitable for her busy bar and restaurant.

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Introduction

´╗┐QUESTION 2 Question: Bianca went to Crystal Sounds Ltd, a leading music system specialist, to buy a DVD player for her busy bar and restaurant. She told Miles, the salesman, that she needed a powerful DVD player because the restaurant became noisy at busy periods. Miles showed Bianca the Adventurer ZX player, which he said was ?sophisticated, yet very user friendly?, honestly believing this to be the case. Miles also said ?in my opinion, this model will be perfect for you as the sound quality is superb even at a high volume.? In fact, the Adventurer ZX system was a brand new model which had just been delivered to the shop, so Miles had never had an opportunity to hear how it sounded when played. Bianca declined the opportunity to listen to the Adventurer ZX system. She was in a hurry and decided to buy the system on the basis of what she had been told about it by Miles. After a few days use, Bianca discovered the Adventurer ZX was totally unsuitable for her busy bar and restaurant. ...read more.

Middle

In the case Bisset v Wilkinson [1927], the claimant had purchased a piece of farm land to use as a sheep farm. The defendant was asked how many sheep the land would hold but as the defendant had never used it for sheep; he estimated that it would carry 2000 sheep. The estimate turned out to be wrong and the claimant brought an action for misrepresentation. It was held that the statement given by the defendant was only a statement of opinion and not a statement of fact and therefore it was not an actionable misrepresentation. A statement of fact is any written or oral declarations of facts in a court case whereas a statement on opinion is a statement of a belief based on grounds incapable of actual proof. A statement of fact cannot amount to a misrepresentation as there is a presumption that everyone knows the law and therefore it cannot be falsely stated. Applying the law from the case Bisset v Wilkinson and applying it to the facts of this scenario, the statement that Miles had given cannot amount to misrepresentation as his statement was merely a statement of opinion which he had honestly held. ...read more.

Conclusion

The fact that he had declined the offer to check the books reinforced rather than negated that reliance. Applying the law from this case, Bianca will not be able to claim misrepresentation as that can only happen if she knew that the statement that Miles had given was untrue. For a misrepresentation to be actionable, it must have acted on the mind of the representee. If the representee is unaware of the misrepresentation then he cannot take action on the basis of it. In this scenario, the representee is Bianca. She in unaware of the misrepresentation and therefore cannot take action on the basis of it. As Miles made a statement not knowing if it was true or not, it will lie under negligent misrepresentation. Negligent misrepresentation is a statement made without reasonable grounds for belief in its truth. In negligent misrepresentation, the burden of proof will be on the representee to demonstrate that they had reasonable grounds for believing the statement given to be true. In this scenario, Bianca believed the statement as Miles was a salesman and she thought that he will have knowledge of the system. In conclusion, Bianca does have contractual rights and she will be able to claim for damages for negligent misrepresentation under s2(1) of the Misrepresentation Act 1967. ...read more.

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