A Connecticut brokerage advertises a listing as being in a 'top-rated school district' when the local schools have recently received below-average state performance ratings. A buyer purchases the property relying on this claim. Under Connecticut law, this advertising claim is BEST characterized as:
Correct Answer
B) A material misrepresentation that may violate CUTPA and subject the brokerage to civil liability
Describing a school district as 'top-rated' when state performance data shows below-average ratings is a specific factual claim that is demonstrably false. This constitutes a material misrepresentation under Connecticut's Unfair Trade Practices Act (CUTPA, CGS § 42-110a et seq.), which prohibits deceptive acts and practices in commerce. Because a buyer relied on this claim in making a purchasing decision, the brokerage faces civil liability including actual damages, punitive damages, and attorney's fees under CUTPA, as well as potential CREC disciplinary action.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
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