Use This Fact Situation to Answer the Related Questions That

question 62

Multiple Choice

Use this fact situation to answer the related questions that follow it. Marvin is an investment counsellor.Alice is one of Marvin's clients.Alice has no investment experience and relies on Marvin's advice in making her investments.Last night,while he was sleeping,Marvin had a dream that the shares of Very Big Company (VBC) would go up a great amount in value.As a result,without even checking to ensure that VBC was a good company to invest in,this morning Marvin called Alice and told her to put all of her money into VBC,which Alice did.Later that day VBC declared bankruptcy and Alice lost all of her money.
In these circumstances,Marvin's advice to Alice is

• A)an example of undue influence.
• B)an innocent misrepresentation.
• C)a fraudulent misrepresentation.
• D)a mistake.
• E)a negligent misrepresentation.

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Definitions:

Knowledge

The theoretical or practical understanding of a subject, including facts, information, descriptions, or skills acquired through experience or education.

Analytic Intelligence

One of the three types of intelligence proposed by Sternberg, characterized by the ability to analyze, evaluate, judge, compare, and contrast information.

Poorly Defined

Lacking in clarity, precision, or detailed explanation.

New Information

Data or knowledge received or learned that was previously unknown, often leading to a revision of understanding or perspective.