Opinion ID: 2366381
Heading Depth: 1
Heading Rank: 11

Heading: In the Conduct of Trade or Commerce

Text: Purvis and Vacationland Realty do not dispute that their participation in the sale of the Deering property was in the conduct of trade or commerce, nor do they dispute that they failed to disclose the existence of the oil tank. Whether their breach of their regulatory duty is an unfair or deceptive practice is a question of fact for consideration of the factfinder. The Dyer Library Association, however, argues that the UTPA does not apply to its sale of the Deering property because any action the library association took in the transaction was not done in the conduct of trade or commerce. The extent of what constitutes the conduct of trade or commerce pursuant to the UTPA is a matter of law we review de novo. In defining trade or commerce the UTPA includes the sale of real property but is silent as to any requirement of an ongoing business context. 5 M.R.S.A. § 206(3) (1989). The Massachusetts Supreme Judicial Court has construed the conduct of trade or commerce pursuant to the Massachusetts unfair trade practices act, which like Maine's tracks the Federal Trade Commission Act, to mean not only a transaction done in the ordinary course of a business or occupation but also an isolated transaction that takes place in a business context, as opposed to one done on a private, nonprofessional basis. Begelfer v. Najarian, 381 Mass. 177, 409 N.E.2d 167, 175-76 (1980). The Massachusetts Court's analysis accords with our own. An isolated transaction in a business context may constitute the conduct of trade or commerce for purposes of the UTPA. Factors relevant to whether a transaction took place in a business context include the nature of the transaction, the character of the parties, the activities engaged in by the parties, whether the parties have engaged in similar activities in the past, whether the transaction is motivated by business as opposed to personal reasons, and whether the parties played an active part in the transaction. See id. The Dyer Library Association is a nonprofit charitable corporation. It is partially publicly funded. The library association has engaged in the sale of property infrequently but occasionally, when donated property is sold to raise funds for the association's charitable purposes. The association's role in the sale of the Deering property was limited and equivalent to that of a private homeowner listing a residence for sale with a professional real estate agency. No prima facie evidence on the record establishes that the Dyer Library Association's sale of the Deering property was in a business context. As a matter of law, therefore, this isolated transaction of the sale by Dyer Library Association to the Binettes does not constitute the conduct of trade or commerce. The trial court did not err in entering a summary judgment in favor of the Dyer Library Association on the Binettes' claim for violation of the UTPA. The entry is: Summary judgment in favor of the Dyer Library Association on the claim for violation of the Unfair Trade Practices Act affirmed. Summary judgments in favor of Clifford Purvis, Dyer Library Association and Vacationland Realty on the claim for negligent misrepresentation and in favor of Clifford Purvis and Vacationland Realty on the claim for violation of the Unfair Trade Practices Act vacated. Remanded for further proceedings consistent with the opinion herein. All concurring.