Which of the Following Is an Example of Passive Fraud

question 10

Multiple Choice

Which of the following is an example of passive fraud?

• A)A homeowner tells a home buyer that the basement of the home never floods, when in fact the homeowner knows it has several significant leaks.
• B)An attorney fails to tell his or her client of an offer to settle a case.
• C)A thrift store sales clerk mistakenly tells a customer that a table is oak instead of pine.
• D)A car salesman tells a customer that he believes the latest model of certain pickup truck is more reliable than previous models.

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Definitions:

Recovery Phase

A stage in the economic cycle where activity starts to increase again after a downturn, leading to improvements in employment, consumer confidence, and spending.

Recessionary Phase

A period in the business cycle where the economy is contracting, leading to reduced economic activity and increased unemployment.

Prosperity Phase

A period during an economic cycle characterized by high economic growth, employment, and consumer spending.

Recession Phase

An interval of economic downturn where commercial and manufacturing operations decrease, commonly indicated by two successive quarters of falling GDP.