A Salesman Innocently Misrepresented a Fact to a Customer About

question 161

Multiple Choice

A salesman innocently misrepresented a fact to a customer about a new printer. He honestly believed his statement was true and was not careless. Although this fact was not about a term of the contract, it did induce the customer to buy that printer. The next day, the customer learned the true facts and wanted to return the printer. If the store refused to take it back and the customer sued, which of the following would be the most likely result?

• A) An award of damages
• B) The buyer's case dismissed
• C) An order of specific performance
• D) An order of rescission
• E) An injunction

---

Definitions:

Large Denominations

Refers to currency or securities of a high face value.

Operating Leases

Operating leases are contractual agreements in which the lessee pays to use an asset for a specific period without gaining ownership, typically used for equipment and vehicles.

Capitalize

The accounting practice of recording a cost/expense as an asset, rather than an expenditure, thereby extending the recognition of its financial impact over the useful life of the asset.

Long-Term Liabilities

Financial obligations of a business that are due for repayment beyond the current fiscal year, including bonds payable, long-term loans, and lease obligations.