Akon Had an Idea for a Website Called "Fantrace," a Site

question 54

Multiple Choice

Akon had an idea for a website called "Fantrace," a site that would help celebrities connect with their fans.Akon entered into an agreement with Broomfield for his help in building the site and Khalilian to help with marketing.Broomfield had recommended his friend,Khalilian,for the project because of his connections with celebrities.However,Broomfield did not tell Akon that he knew that Khalilian was a liar and that he had also been in prison.When things did not go well in working with the two,Akon sought to set aside the contract on the grounds of misrepresentation.Which of the following is correct?

• A)Withholding information is not misrepresentation.
• B)Broomfield had no obligation to make any disclosures about his friend.
• C)Akon can have the contract rescinded on the grounds of misrepresentation.
• D)Intent is not present, so there is no case for misrepresentation.

---

Definitions:

Equilibrium Price

Equilibrium price is the price at which the quantity of goods supplied is equal to the quantity of goods demanded, achieving a state of market balance.

Purely Competitive

Refers to a market configuration in which numerous companies offer the same products, with no single company having the power to affect the market's pricing.

Short-Run Equilibrium

A state in which market supply and demand balance out at a specific price level, usually considered within a timeframe where some factors are fixed.

Zero Economic Profits

A situation where a firm's total revenues exactly equal its total costs, leading to no net profit or loss after considering both explicit and implicit costs.