Adam Wants to Buy a Six-Passenger Car

question 6

Multiple Choice

Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports car Adam sees on the car lot would be just perfect for six people. Adam test drives the car and then buys it.

• A) Adam has a valid cause of action for fraud.
• B) Adam is not entitled to relief based on fraud because he was not justified in relying upon the salesman's representation that the car would seat six people.
• C) The element of scienter is missing in this fact situation.
• D) The salesman is in a confidential relationship with Adam.

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Definitions:

Overall Goals

General objectives that an organization or individual aims to achieve in the long term.

Operational Planning

The process of planning short-term strategies and actions that support a company's overall objectives and strategic plan.