Denis Sells a Motorcycle to Elton Without Disclosing That the Odometer

question 33

Multiple Choice

Denis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Denis is most likely liable for

• A)fraudulent misrepresentation.
• B)none of the choices.
• C)mistake.
• D)puffery.

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Definitions:

Bondholders

Investors or entities that own bonds issued by corporations or governments, holding a right to receive fixed interest payments.

Customers

Individuals or entities that purchase goods or services from a business.

Preemptive Rights

Rights that allow existing shareholders to buy additional shares before new shares are offered to the public, thus maintaining their percentage of ownership.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with care of money or property.