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Julie Murdock was interested in buying a house offered by Greg and Beth Puckett. During a tour of the house, Julie noticed an apparatus labeled “water conditioner” in the basement and asked, “What kind of water do you have here?” Mrs. Puckett replied, “It’s good. It’s fine. It’s a little hard but this system takes care of it.” Mr. Puckett, though present, remained silent. Julie purchased the house and, after moving in, discovered the water came from a well and that it smelled like rotten eggs. Sulfur was in the water and, although the water was a little hard, the sulfur had nothing to do with the water being hard. After treating the water, the water still smelled like sulfur and chlorine, which was used to treat it. After exhaustive attempts to fix the smelly water problem, Julie hired a plumber, who connected the house to a municipal water system. The cost was $30,000. Julie sues Greg and Beth Puckett for fraud. Did either or both of the defendants commit fraud? Why?

Operation Management, Management Studies

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