Wednesday, September 17, 2008

Buyers' Remorse or how to publish embellished ads

A group of homeowners recently lost a bid to escape from their purchase contracts in Opera Tower. The advertising material spoke about an amenities that were alleged to be misleading, byt the judge, a Clinton appointee, ruled against them stating that they had full and correct descriptions in the Prospectus.

I am not sure why they did not sue under Section 718.504 which provides for a cause of action for false and misleading advertising.

Moral of the story: There is Moral hazard in many economic decisions; just because Uncle Sam will bail out AIG, doesn't mean that us little guys don't have to pony up when we make bad decisions.

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