Bruno Owns a French Poodle That He Advertises for Sale

question 151

Multiple Choice

Bruno owns a French Poodle that he advertises for sale.The dog has a history of viciously biting three local neighborhood kids without reason,as well as each of Bruno's three kids.Marge is looking for a dog to be a playmate for her children.When she comes to Bruno's house to see the dog,she sees it playing with Bruno's kids and doesn't ask about the dog's past behavior.She tells Bruno that she's looking for a dog for her kids and Bruno says nothing.Five minutes after the dog enters her house,it bites one of Marge's kids.Which of the following is the most accurate statement regarding Bruno's nondisclosure of his dog's vicious propensities?

• A) Bruno has not committed a fraud, because silence cannot be considered a fraud.
• B) Bruno has not committed a fraud, because Marge did not specifically ask if the dog bites.
• C) Bruno has committed an innocent misrepresentation, because he did not state a lie but only withheld all of the truth.
• D) Bruno has committed fraud, because he withheld a material fact.
• E) This cannot be fraud or a misrepresentation, because no one can predict what a dog will do, so Bruno should not be responsible.

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Definitions:

Labor-Supply Curve

A graphical representation showing the relationship between the quantity of labor supplied by workers and the wage rate.

Income Effect

How an alteration in income levels for a person or economy affects the demand for a particular good or service.

Substitution Effect

The change in quantity demanded of a good that results from a change in price, making the good more or less costly relative to other goods.

Retirement Period

The phase in an individual's life post their active working years, during which they are typically supported by savings, pensions, or social security.