Leona Drove into an Eatery and Ordered an Item Called

question 75

Multiple Choice

Leona drove into an eatery and ordered an item called "Volcano Chicken." When asked if the chicken she ordered was very spicy,Leona was informed by Harry-who took the order and was not aware of all details of the eatery yet as he was a new employee-that it was not.However,when Leona took a bite,she found the hot sauce extremely spicy which resulted in her choking on the piece of chicken and requiring medical help.Which of the following statements is true in this context?

• A) Harry can be sued for fraud in the inducement.
• B) Harry's employment can be terminated for having committed fraud in the inception.
• C) Harry can be sued for misrepresentation of the law.
• D) Harry cannot be sued due to innocent misrepresentation.

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Definitions:

Quick Assets

Quick assets are assets that can rapidly be converted into cash, excluding inventory and pre-paid expenses, often used in calculating liquidity measures.

Current Liabilities

Financial obligations that a company is required to pay within one year or within its current operating cycle.

Percent Change

A mathematical calculation that shows how much something has increased or decreased in value or quantity over time, expressed as a percentage.

Base Year

A reference year used for comparative financial analysis, serving as a benchmark for evaluating changes over time.