A Misrepresentation Is Material If

question 61

Multiple Choice

A misrepresentation is material if:

• A) it would likely induce a reasonable person to enter into a transaction.
• B) the maker does not know it would likely induce the other party to enter into the transaction.
• C) it is made knowingly.
• D) it misrepresents a transaction's value by more than 20%.

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Definitions:

Medulla

The inner region of an organ or tissue, especially the medulla oblongata, which is a part of the brainstem controlling vital body functions such as breathing and heart rate.

General Adaptation Syndrome

According to Hans Selye, a series of physiological reactions to stress occurring in three phases: alarm, resistance, and exhaustion.

Resistance Phase

The second stage of the general adaptation syndrome, where the body adapts to and resists stress, but at a high cost to its energy resources.

Exhaustion Phase

The final stage of the general adaptation syndrome, characterized by the body's inability to continue adaptation to stress, leading to potential burnout or health issues.