Brandon Intended to Start a New Company

question 12

Multiple Choice

Brandon intended to start a new company. He issued a public statement regarding the proposed business venture. That document contained a false statement to the effect that Brandon had received government authorization to use nuclear power for his venture. In fact, authorization had not yet been granted and, indeed, was eventually refused. After reading Brandon's public statement, Abigail invested in the company. She later lost her investment when the company folded. She then sued Brandon for the tort of deceit. Which of the following statements is TRUE?

• A) Brandon may be held liable even if he did not intend to deceive Abigail, as long as he did in fact deceive her.
• B) The tort of deceit usually causes a court to award an injunction.
• C) Brandon may be held liable even if he honestly believed that he had received government authorization to use nuclear power.
• D) Even if Brandon is held liable, Abigail will not necessarily receive damages representing the value that her investment would have had if Brandon's statement had been correct.
• E) Brandon may be held liable if a reasonable person would have relied upon his statement, even if Abigail did not do so when she made her investment.

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Definitions:

Declining Industry

An industry experiencing a long-term drop in output, sales, or employment.

Lagging Technology

Technology that is behind the current standard or trend, often outdated or rendered obsolete by new innovations.

Inelastic Nature

A characteristic of a good or service whose demand does not significantly change with the price.