Deck 22: Liability, Agency Problems, Fraud, and Ethics in Real Estate Finance

Question 1

The law excludes from the category of an owner or operator "a person,who,without participating in the management of a vessel or facility,holds an indicia of ownership primarily to protect his security interest in the vessel or facility." This is termed:

A) secured-lender exemption
B) strict liability
C) potentially responsible parties
D) joint and several liability

Answer 1

secured-lender exemption

Question 2

Making of a promise with no intention of fulfilling it is referred to as:

A) nondisclosure fraud
B) promissory fraud
C) tort
D) fiduciary

Answer 2

promissory fraud

Question 3

A lender that has a property taken because of its use in drug transactions can use a defense referred to:

A) due diligence
B) good faith dealings
C) breach of contract
D) innocent-owner

Answer 3

innocent-owner

Question 4

The fiduciary relationship which results from the manifestation of consent by one person to another such that the other shall act on behalf and subject to his control,and consent by the other so to act,is referred to as:

A) statute of frauds
B) agency
C) lender control
D) parole evidence rule

Question 5

One who intentionally causes injury to another is subject to liability to the other for that injury,if this conduct is generally culpable and not justifiable under the circumstances.This is referred to as:

A) prima facia tort
B) breach of contract
C) fraud
D) strict liability