I recently bid and won this “IXO-Altaya” 1:18 scale Yamaha YSR-M1 model. I actually won the bid at $0.99 plus $13.99 in shipping from China. I thought for sure someone else would bid, I mean after all it’s from IXO, right? Well, not exactly. I’ve read Altaya is a lower priced IXO brand, though I can’t find it on the internet. When I opened the box, I was pretty disappointed. The model is 100% plastic from what I can tell. And then I flipped it over and found this:

Leo Models? I can’t seem to get on the website listed. First, is Leo Models connected to IXO in some way? Is Leo Models even around any more? Your sage advice and words are greatly appreciated.

I did take a few actions:

1. I wrote the seller and asked him why the model says Leo Models on the bottom.

2. I wrote IXO to ask them about Altaya and Leo Models.

I happen to be studying for my Business Law midterm. Here’s what the law has to say about something like this instance:

Fraudulent Misrepresentation

A misrepresentation leads another to believe in a condition that is different from the condition that actually exists. Although persons sometimes make misrepresentations accidentally because they are unaware of the existing facts, the tort of fraudulent misrepresentation (fraud), involves intentional deceit for personal gain. The tort includes several elements:

  1. A misrepresentation of material facts or conditions with knowledge that they are false or with reckless disregard for the truth.
  2. An intent to induce another party to rely on the misrepresentation.
  3. A justifiable reliance on the misrepresentation by the deceived party.
  4. Damages suffered as a result of that reliance.
  5. A causal connection between the misrepresentation and the injury suffered.

For fraud to occur, more than mere puffery, or seller’s talk, must be involved. Fraud exists only when a person represents as a fact something he or she knows is untrue. For instance, it is fraud to claim that the roof of a building does not leak when one knows that it does. Facts are objectively ascertainable, whereas seller’s talk (such as “I am the best accountant in town”) is not, because the use of the word best is subjective.



Cross, Frank B. The Legal Environment of Business: Text and Cases, 10th Edition. Cengage Learning, 20170101. VitalBook file.