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.

---

Definitions:

Income

The reward garnered over time, generally in a consistent pattern, from occupational or investment sources.

Expected Utility Function

A concept in economics that predicts the utility or satisfaction a rational individual expects to receive from different outcomes, used in decision making under uncertainty.

Sure Payment

A guaranteed payment, often referring to financial transactions where the payer is obligated to pay a certain amount.

Lottery

A form of gambling which involves drawing lots for a prize, often administered by state or federal governments.