Asked by Alyssa Nation on May 22, 2024
Verified
Which of the following is most likely to constitute a misstatement that can give rise to fraud or misrepresentation liability?
A) A broker says to his client,"I think that this car's engine has been overhauled."
B) A customer sales representative of the most popular brand of car says to the customer,"This is the highest selling car in town."
C) An owner of a house gets his ceiling painted to conceal a leaking roof and says,"I got the ceiling painted recently."
D) The owner of an unencumbered horse states,"I am selling the horse to raise funds for my ranch."
Misstatement
An error or inaccuracy in a statement or document, which can be either unintentional or deliberate.
Fraud
An intentional deception made for personal gain or to damage another individual.
Misrepresentation Liability
Legal responsibility arising from providing false or misleading statements that someone else relies on to their detriment.
- Differentiate the terms concealment, nondisclosure, and misrepresentation as they apply in contract law.
Verified Answer
KC
Kaykay Crockett CrockettMay 23, 2024
Final Answer :
C
Explanation :
Voluntarily hiding a fact,or concealment,can amount to a case of misrepresentation or fraud.In this case,the owner deliberately held information back by not mentioning the leaking roof,and therefore liable for a case of misrepresentation or fraud.
Learning Objectives
- Differentiate the terms concealment, nondisclosure, and misrepresentation as they apply in contract law.