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Fraud or false advertising?

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. 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. 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. These answers do not create an attorney client relationship. My answers may offend I believe in telling the truth, I use common sense as well as the law. Other state's laws may differ.. There are a lot of really good attorneys on this site, I will do limited appearances which are preparation of court documents it is , less expensive. However generally I believe an attorney is better than none, but many will offer a free consultation and a face to face meeting generally will be better, I like my clients to write a short one page history of the fact and questions they have prior to meeting with them, so nothing is forgotten.

  3. 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 create an Attorney-Client relationship, are not solicitations but merely a generalized response or comment. The facts of every case is unique and requires carefully thought out investigation and research exclusively available during a one-on-one true Attorney-Client consultation including a signed fee agreement.

  4. 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. X, Y, S, Y ???????????????????????????????????????????????????????????????????????????????????

    This answer/response is based on the information provided in your inquiry and requires a much more complete context than is available in this public forum. Please do NOT use this answer/response to say or do anything regarding your situation. BEFORE you say or do anything consult with an experienced local Federal and/or state criminal defense attorney in your jurisdiction who will listen to you and your concerns.

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