Legal Definitions - fraud on the community

Definition: Fraud on the community is a type of fraud where a person knowingly misrepresents the truth or conceals a material fact to induce others to act to their detriment. It can also refer to unconscionable dealing or unfair use of power resulting in an unconscionable bargain.

Examples:

• A company knowingly misrepresents the quality of their products to customers, causing them to purchase inferior goods.
• A landlord conceals the fact that a property has a history of flooding, causing tenants to suffer property damage and financial loss.
• A car dealership uses high-pressure sales tactics to convince a customer to purchase a car they cannot afford, resulting in financial hardship.

These examples illustrate how fraud on the community can harm individuals and the community as a whole. It can lead to financial loss, damage to property, and other negative consequences. It is important to be aware of this type of fraud and take steps to protect oneself from it.