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Ghostbusters Summary

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In the case, commonly known in the legal world as the Ghostbusters ruling, the plaintiff (Jeffrey M. Stambovsky) alleges that Ackley and her real estate broker, defendant Ellis Realty, made material misrepresentations of the property in that they failed to disclose that Ackley believed that the house was haunted by poltergeists. Moreover, the plaintiff presented evidence that Ackley shared this belief with her community and the general public through articles published in the local newspaper. In November 1989, approximately two months after the parties entered into the contract of sale but subsequent to the scheduled closing, the house was included in a five-house walking tour and again described in the local newspaper as being haunted. …show more content…
This is a principle of contract law in many jurisdictions that places the onus on the buyer to perform due diligence before making a purchase. The term is commonly used in real property transactions, but applies to other goods, as well as some services (). The actions taken by the seller of not giving the real estate company full disclosure of the situation of the house, in conjunction to the actions of the buyer taking legal action against the seller and the company, made the real estate agency to lose a very sizeable piece of business. Furthermore, with this event the company lost more than economic resources as it made history not in a very good way by gaining bad publicity from the media. I think one of the most important things that can be done to avoid the same legal problem for the company in the future is to do business with the utmost transparency. The fact that someone is withholding vital information for a consumer to make the best educated decision possible is not a good practice. From the legal point of view, making sellers and buyers sign a document stating that the company takes no responsibility for either of the parties being untruthful or for withholding vital information to the transaction will be a way to legally avoid liability in cases like

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