A Teaching Note on Misrepresentation and Fraud

In this Teaching Note, the authors conclude their series in the study of the common law causes of action that were available to a plaintiff in cases of misrepresentation and fraud. In Part I of this article, Civil Fraud, the authors describe the prima facie elements of proof, as well as the exceptions that were recognized relating to opinions, commendations, the “duty to speak,” and statements relating to a matter of law, citing several of the major cases important in understanding each issue. In Part II of the article, Securities Fraud, the authors provide a discussion of securities fraud, with examples taken from prominent “real-world” cases which students may readily recognize from their studies in finance, accounting, business ethics, or other business-related courses.