A Seller Unknowingly Made a Misrepresentation During Negotiations to Sell

question 45

Multiple Choice

A seller unknowingly made a misrepresentation during negotiations to sell his car.Now that the seller is aware of the misrepresentation and the prospective buyer is returning to make an offer,what recourse is available to rectify the situation and accept the offer without risking an ensuing lawsuit?

• A) The seller has no recourse; once information is offered,it must be completely accurate.
• B) The seller can remain silent to secure the best price and plead mistake as a defence.
• C) The seller should simply forego the deal with this buyer and look for a new buyer.
• D) The seller must attend to the prompt disclosure of the correct facts to the prospective buyer.

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Definitions:

Impulse Management

Techniques or strategies used to control or direct spontaneous decisions typically made on the spur of the moment.

Commission Compensation Plan

A remuneration structure where employees or agents are paid based on the sales or deals they close, incentivizing performance.

Net Dollar Volume

The total amount of sales revenue after discounts, returns, and allowances are subtracted.

Behavioral Measures

Quantitative indicators used to assess actions and reactions of consumers, often used in market research.