Ralph Sold a Motel to Steve by Stating That He

question 48

Multiple Choice

Ralph sold a motel to Steve by stating that he had paid $250,000 for it and that his net average annual profit from the business has been $40,000. In reality he paid $100,000 for the motel and has earned a net average annual profit of only $30,000. Steve made no attempt to verify the statements until after the transaction was completed. In this case:

• A) Ralph has committed fraudulent misrepresentation.
• B) Steve is bound by the contract, because he failed to verify the statements which were made to him.
• C) Ralph has used economic duress to compel the sale.
• D) All of these.

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Definitions:

Experimental Group

In an experimental research design, this is the group of participants who are exposed to the independent variable, to assess the effect of this variable.

Independent Variable

Within a study, the variable which is altered or adjusted by the investigator to see its impact on the dependent variable.

Dependent Variable

The dependent variable is the variable being tested and measured in a scientific experiment, which is expected to change as a result of variations in the independent variable.

Anecdotal Evidence

Information derived from personal accounts, observations, or stories rather than from scientific analysis or hard data.