Online Fraud Case Study

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ISSUE Under Arkansas case law regarding the tort of fraud, does an online purchaser of a sword have a claim for actual fraud, when (1) the sword that the seller displayed online turned out to be a replica; (2) the seller was gifted the sword from his brother, and only pulled the sword from the sheathing once prior to placing it in storage; (3) the seller afforded the buyer the opportunity to inspect the sword prior to the sale but the buyer declined due to time constraints; (4) the seller purported himself to be credible as to having knowledge of East Asian weaponry that the buyer considered upon purchasing the sword sight unseen; (5) the sword that was purchased for $50,000 is only worth $1,000?
BRIEF ANSWER The Court will probably not find the defendant guilty of actual fraud. Even though there is strong evidence that the seller did deceive the buyer, it will likely not prove that all of the five elements have been satisfied. The first element is not disputed due to the fact that the sword was supposed to be an original work, but a falsification of material was discovered when the buyer obtained a certified appraisal coupled with a metallurgical test that later revealed the sword to be a replica of inferior quality. The Court will likely find that the second element is not satisfied because Budd did not knowingly misrepresent the
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12th, 2016, discusses an action between two Arkansas residents regarding an alleged fraud committed against Beatrix Kiddo (Beatrix), when she made an online purchase of a Hattori Hanzo “Black Mamba” sword from Budd Sidewinder (Budd), in the amount of $50,000. The Hattori Hanzo is a highly collectable Japanese sword that utilizes the finest quality Hanzo steel and is produced only in limited numbers. Beatrix, having recently reunited with her daughter Bebe Charmer (Bebe), wished to purchase Bebe a “Black Mamba” edition sword as a gift for her 16th birthday, before their scheduled move to

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