Eugene, an Accountant, Convinces His Client Faye to Enter into a Contract

question 15

Multiple Choice

Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is

• A)fraudulent misrepresentation.
• B)undue influence.
• C)mistake.
• D)duress.

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Definitions:

Ponzi Scheme

A fraudulent investment scam promising high rates of return with little risk to investors, which generates returns for older investors through new investors' capital rather than legitimate profit.

Personal Property

Movable property not attached to real estate, such as vehicles, furniture, and jewelry.

Robbery

The act of taking someone's property through force or threat of force.

Criminal Fraud

Illegally deceiving another for personal or financial gain, considered a criminal offense.