Fraud or false advertising?

Asked 9 months ago - Sacramento, CA

X is accounting exam tutor. Y has experience grading real exams (former exam grader). X isn't former exam grader but passed exam. X gives Y on-call, not exclusive, independent contractor job to grade practice exams to prepare X's students to take exam. X advertises "all" practice exams will be graded by former exam grader. X uses Y's experience during sales, but does not give Y's name. Y unaware X using Y's experience to advertise, and didn't give X publicity rights. S buys tutoring from X. X doesn't disclose S to Y. X grades practice exams himself, but doesn't tell S he's grading until S asks. Y assumes X forwarding all practice exams to Y to grade, and doesn't know X grading himself. Is X committing fraud or false advertising against S and/or Y?

Attorney answers (5)

  1. Vijay Dinakar

    Pro

    Contributor Level 17

    4

    Lawyers agree

    Answered . As your professor and proctor told you, this is not an open book exam. If this is an actual question, consult a lawyer in person to answer a detailed question like this.

  2. Stephen Ross Cohen

    Contributor Level 20

    2

    Lawyers agree

    Answered . X should go to H, E, L and L without facts this is nothing more than a logic test.

    My name is Stephen R. Cohen and have practiced since 1974. I practice in Los Angeles and Orange County, CA.... more
  3. Joshua Y. Lee

    Contributor Level 11

    2

    Lawyers agree

    Answered . This is a gray area. Black and white and on paper yes this could be considered fraud. However, it's not since Y is the experienced grader as advertised. In court, you'll have a difficult time proving fraud. It's not easy. Second, even if there is fraud, what are the damages? How much money is worth a 1 year trial? You have to wonder is it worth pursuing?

    Lastly, most likely result is that if S sues for fraud because he paid money expecting an experienced grader to grade his paper not someone who is pretending to be an experienced grader, there are tons of arguments that X can make in his defense. Not worthwhile going into detail.

    This is one of those things that seems like something on paper but in real life its nothing (unless someone got hurt....if S relied on X and lost out on real job opportunities, money, time, etc. then you have something. However you have to prove but for X, S would have passed.) That's nearly impossible.

    Any advice, suggestions, answers to questions, directions, either implied or express, are not binding, do not... more
  4. Ray Edward Richards II

    Contributor Level 11

    2

    Lawyers agree

    Answered . I think it best to save such a detailed and I am sure hypothetical question for an in person face to face co sulfate on with an attorney.

  5. Raymond George Wigell

    Pro

    Contributor Level 19

    1

    Lawyer agrees

    Answered . X, Y, S, Y ???????????????????????????????????????????????????????????????????????????????????

    This answer/response is based on the information provided in your inquiry and requires a much more complete... more

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