The Ethical Dimension

In not disclosing the house’s reputation to Stambovsky, was Ackley’s behavior unethical because she knew something he did not, or was it unethical because of the nature of the information she omitted? What if Ackley had failed to mention that the roof leaked or that the well was dry—conditions that a buyer would normally investigate? Explain your answer.

The Legal Environment Dimension

Why is applying the strict rule of caveat emptor in this case inappropriate? How would applying this doctrine increase costs for the purchaser?