THE ETHICAL DIMENSION At what point do the misrepresentations about the size of the leased space become unethical—at 1 percent, 2 percent, or more?

THE LEGAL ENVIRONMENT DIMENSION What defense could the shopping center owners raise to counter McClain’s claim?

Kelly McClain operates a business known as “A+ Teaching Supplies.” Ted and Wanda Charanian are the principals of Octagon Plaza, LLC, which owns and manages a shopping center in Valencia, California. On February 28, 2003, McClain agreed to lease commercial space in the shopping center. The lease described the size of the unit leased by McClain as “approximately 2,624 square feet,” and attached to the lease was a diagram of the shopping center that represented the size of the unit as 2,624 square feet. Because the base rent in the shopping center was $1.45 per square foot per month, McClain’s total base rent was $3,804 per month. Moreover, because the unit presumably occupied 23 percent of the shopping center, McClain was responsible for this share of the common expenses. McClain filed a suit, claiming that the Charanians knew that the representations were materially inaccurate. As a result of Octagon’s misrepresentations, McClain was induced to enter into a lease that obliged her to pay excess rent. At trial, the Charanians prevailed. McClain appealed.