Which of the Following Statements About Misrepresentation Is True

question 12

Multiple Choice

Which of the following statements about misrepresentation is true?

• A)When salespeople loosely describe their product or service in glowing terms, those statements can be relied upon by the potential buyer.
• B)Generally, the more knowledgeable the customer, the greater the chances the court will interpret an incorrect statement by a salesperson as an actionable misrepresentation.
• C)When a salesperson makes claims of a "factual nature" regarding a service's inherent capabilities, the law does not treat these comments as statements of fact and warranties.
• D)A salesperson's opinion regarding the quality of the product being sold is known as sales puffery, and is not legally actionable.
• E)Even if the salesperson misrepresentation statement is made innocently, most courts will award damages to the customer.

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Definitions:

Binomial Distribution

A statistical function that delineates the chances of a variable assuming either of two mutually exclusive values, based on certain parameters.

Normal Distribution

A statistical distribution where data is symmetrically distributed around the mean, with most observations clustering around the center and fewer observations the further away they are from the mean.

Observational Studies

A study where the researcher observes and records behavior without manipulating the environment or conditions.

Experiments

A procedure undertaken to test a hypothesis, typically involving the manipulation of variables to observe the effect on some behavior or condition.