Larson Entered Forrester's Auto Mart to Purchase a Used Car

question 36

Multiple Choice

Larson entered Forrester's Auto Mart to purchase a used car.Larson found a vehicle with a sales price of $11,000.After Forrester answered all of Larson's questions,Forrester and Larson agreed to a sale.As Larson was leaving to get the money to pay for the car,Forrester told Larson that he thought Robert Redford formerly owned the car.Larson later learned that Robert Redford had never owned the car.If Larson seeks to rescind the deal based on Forrester's statement,Larson will

• A)win because he relied on the misrepresentation.
• B)win because there was a misrepresentation of a material fact.
• C)lose because he will not be able to prove reliance on the misrepresentation.
• D)lose because Forrester made a unilateral mistake.

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Definitions:

Delivery Cycle Time

The total time taken from receiving a customer order to the delivery of the product or service to the customer.

Fill Orders

The process of completing a customer's purchase request by preparing and dispatching the requested products.

External Failure Cost

Expenses incurred when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.

Quality Cost Report

Internal report that details the costs associated with preventing, detecting, and correcting defective work, categorized into prevention, appraisal, and failure costs.