Asked by
Ariana Jonne
on Nov 27, 2024
Verified
Pete, a broker, advises Ollie to invest in Rocky Road Inc. When the share price of Rocky's stock decreases, Ollie accuses Pete of fraud, claiming reliance on Pete's advice. The reliance that gives rise to liability for fraud requires
A) a threat of physical force.
B) a misrepresentation of fact knowing that it is false.
C) puffery.
D) a statement communicated to at least one person other than the plaintiff.
Fraud
A deliberate deception practiced to secure unfair or unlawful gain.
Misrepresentation
A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.
Reliance
The act of depending or trusting in something or someone; in legal contexts, often refers to actions taken based on assurances or promises from others.
- Gain insight into the legal concepts concerning the disruption of business partnerships and fraudulent misrepresentation.
Verified Answer
CS
Learning Objectives
- Gain insight into the legal concepts concerning the disruption of business partnerships and fraudulent misrepresentation.
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