Novada Worked as a Salesperson for White Water Yachts Inc

question 139

Multiple Choice

Novada worked as a salesperson for White Water Yachts Inc. Yates, who was looking at a 30-foot sailboat called the "Mostly Toad," approached him. Yates asked Novada if the boat has been surveyed (inspected) recently, and he was told that it had been just last year and it was in great shape. In fact, it had never been surveyed and had serious fiberglass delaminating problems below in the bilge. Yates bought the boat and in the first month of sailing the boat delaminated and sank. Yates and his family survived, but both he and his wife suffered some serious long-term injuries. Which of the following is correct with respect to the legal position of the parties?

• A) If Novada knew what he was saying was false, Yates could sue Novada and White Water for fraud even if Novada was an independent agent rather than an employee.
• B) If Novada didn't know what he was saying was false, having mixed this boat up with another, Yates can cannot sue either Novada or White Water for negligence, even if Novada was an independent agent rather than an employee. Salespeople are expected to be enthusiastic.
• C) Since this is a used boat, this is a "buyer beware" situation, and Yates should have had the boat inspected himself. He has no action against Novada or White Water in these circumstances.
• D) Yates can only sue White Water if the contract itself specifically referred to a recent survey and this information was inaccurate.
• E) Yates can sue only the agent in this situation, not the principal.

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Definitions:

Serving

Serving refers to the act of presenting food or drinks to someone, typically in a restaurant or hospitality context.

Total Utility

The overall satisfaction or pleasure a consumer receives from consuming a particular quantity of goods and services.

Slice of Pie

Often used metaphorically to represent a portion or share of something, such as profit or resources.

Marginal Utility

The additional satisfaction or utility received by a consumer from consuming one more unit of a good or service.