Which of the Following Is True Regarding the Effect of an Innocent

question 74

Multiple Choice

Which of the following is true regarding the effect of an innocent misrepresentation on a contract?

• A) It permits the party that was misled by the false statement to rescind the contract, but damages are not available.
• B) It permits the party who made the false statement to rescind the contract.
• C) It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract.
• D) The contract is automatically void and of no effect, and the party who was misled may recover damages.
• E) It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract, and it also makes the contract void and of no effect.

---

Definitions:

Structural Configuration

The arrangement of roles, responsibilities, and relationships within an organization, determining how it is organized and how it functions.

Simple Organization Design

An organizational structure characterized by low complexity, few hierarchical levels, and wide spans of control.

Dominant Technologies

The leading technologies in a particular field or industry that have widespread adoption and set the standard for operations and products.

Information Technology

Information technology is the combination of machines, artifacts, procedures, and systems used to gather, store, analyze, and disseminate information for translating it into knowledge.