The Law Would Most Likely Impose a Duty of Disclosure

question 50

Multiple Choice

The law would most likely impose a duty of disclosure in a transaction between:

• A) a salesperson and customer.
• B) business partners.
• C) a contractor and a homeowner seeking bids on repairing a roof.
• D) a seller of real property and a potential buyer who knows the property has greater value than the seller realizes.

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Definitions:

Square Feet

A measurement of area equal to a square that is one foot on each side, commonly used to measure the size of rooms or buildings.

Allocation Basis

A criterion or standard used in accounting to distribute costs among various departments, projects, or activities based on benefits received or other equitable relationship.