Avishay and Klaudio are general contractors. They build homes and condominiums. They have created a customized app for their customers. The app allows customers to check the status of their building project, book calls with Avishay or Klaudio, make certain payments through their smartphones, and provide feedback and reviews of Avishay, Klaudio and their work. The app is designed to simplify the building experience for customers. However, there have been all sorts of glitches with the app, resulting in customer complaints and bad reviews. Avishay and Klaudio meet with Leo, another building contractor. Their sales pitch is designed to not only to encourage him to purchase their app, but also, to ask him to invest $500,000 in their company so they can hire more software developers and invest in marketing the app to grow their market share. Avishay and Klaudio tell Leo that their app is an entirely original development and that there is nothing else like it on the market. They also tell him that they hold the patent. However, both of them know that they actually stole the software from a former friend of theirs, Francis. They did not want to tell Leo this, because they knew he may not invest if he knew the truth. Leo invests his retirement savings. Francis sues Avishay and Klaudio, and wins. Leo loses his entire investment.

A) Are Avishay and Klaudio liable to Leo? 

B) If so, for which tort? 

C) How do the elements of this tort apply to these facts? 

Answer rating: 100% (QA)

In the scenario described several legal issues arise and the liability of Avishay and Klaudio to Leo ... View the full answer