Ed Wants to Sell His Car to Bob, a Neighbor

question 3

Multiple Choice

Ed wants to sell his car to Bob, a neighbor.Ed tells Bob that the car is in excellent condition.Ed does not know that there is a serious crack in the crankshaft.Bob buys the car.A week later he is in an accident caused by the defective crankshaft.He sues Ed for misrepresentation.________

• A)Bob's misrepresentation action will succeed because there was scienter.
• B)Bob's misrepresentation action will fail because there was no scienter.
• C)Bob's misrepresentation action will succeed because Ed was careless in failing to tell Bob about the crack in the crankshaft.
• D)Bob's misrepresentation action will fail because Ed is not a merchant.

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Definitions:

Consensus

A general agreement or the practice of developing such an agreement among the members of a group or community.

Frequency

The rate at which an event or occurrence happens within a given period of time.

Stereotype

A generalized belief or expectation about a particular group or class of people that individuals apply to members of that group.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to positive feedback between belief and behavior.