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A Massachusetts real estate brokerage runs an online advertisement that states: 'Buy this home with ZERO closing costs — guaranteed!' The statement is not true for all buyers and depends on negotiated seller concessions. Under which Massachusetts law could this advertisement most directly expose the brokerage to liability?

Correct Answer

D) MGL Chapter 93A, because it prohibits unfair or deceptive acts and practices in trade or commerce

MGL Chapter 93A, the Massachusetts Consumer Protection Act, prohibits unfair or deceptive acts and practices in trade or commerce. A real estate advertisement making a false or misleading guarantee — such as 'ZERO closing costs — guaranteed' when this is not universally true — constitutes a deceptive practice under Chapter 93A. Real estate licensees are subject to Chapter 93A, and violations can result in double or treble damages and attorney's fees.

Answer Options
A
MGL Chapter 188, because homestead protections are triggered by advertising representations
B
MGL Chapter 183, because it governs all real estate conveyance advertising
C
MGL Chapter 151B, because it treats misleading advertising as a form of housing discrimination
D
MGL Chapter 93A, because it prohibits unfair or deceptive acts and practices in trade or commerce

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Related Topics & Key Terms

Key Terms:

advertising_ruleschapter_93Adeceptive_advertisingconsumer_protection

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