45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 18 Unit 3 Exam

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Question #1
Erica describes the condo she’s listed as being “the best unit in the building.” What’s this an example of?
A.   Positive misrepresentation
B.   Intentional fraud
C.   Puffery
D.   Lying
Question #2
Which of the following is true about inadvertent misrepresentation?
A.   The person making the false statement knew it was false.
B.   A false statement was made.
C.   No harm was done to anyone.
D.   The person hearing the false statement did not rely upon it.
Question #3
Which of the following isn’t an element of intentional misrepresentation?
A.   When it's a key piece to the purchase of a property.
B.   When it includes a false action or statement.
C.   When it's committed against a buyer by an agent.
D.   When it's witnessed or validated by multiple people.
Question #4
Which of the following is true about positive misrepresentation?
A.   The person making the misstatement did not know it was false.
B.   The misstatement wasn't relied upon.
C.   The misstatement ended in a positive outcome.
D.   A principal was harmed by the misstatement.
Question #5
Which of the following is an example of puffery?
A.   "This apartment will definitely increase in value. You can't lose!"
B.   "This home is built to last. You won't have maintenance issues for a decade, at least!"
C.   "This condo has the best view this side of the river!"
D.   "I love this house, and I know it will appreciate better than the average house its size!"
Question #6
One element of intentional misrepresentation is that ______.
A.   The person relying on the false information knew it to be false
B.   The false statement did not cause harm to the person who relied upon it
C.   The person making the false statement knew it was false (or should have known)
D.   No one relied on the false statement
Question #7
Which of the following statements is true of a material fact?
A.   A material fact is only related to the condition of a property.
B.   A material fact need not be disclosed to all parties.
C.   A material fact is known only to real estate licensees.
D.   A material fact would cause a reasonable person to either act or not act, if that fact were known.
Question #8
The main difference between puffery and misrepresentation is that _______.
A.   Misrepresentation falsely represents material facts that a reasonable person would rely upon
B.   Puffery doesn't make wild claims
C.   Misrepresentation doesn't exaggerate
D.   Puffery is used to help sell a property

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