Gary Accuses Helen, a Broker with Investment Services, of Fraudulently

question 30

Multiple Choice

Gary accuses Helen, a broker with Investment Services, of fraudulently inducing him to invest in Junkbonds Inc., after the company's stock price declines in value. The reliance that gives rise to liability for fraud requires​

• A) ​a subjective statement.
• B) ​misrepresentation of a fact knowing that it is false.
• C) ​puffery.
• D) ​seller's talk.

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Definitions:

Communication Obstacle

Any barrier that prevents effective exchange of ideas or information between people, such as language differences, cultural misunderstandings, or physical barriers.

Obstacle Explanation

The process of detailing or clarifying the nature, causes, and potential solutions for barriers or challenges faced.

Bypassing

Occurs when there is a misunderstanding or lack of clarity in communication due to differences in the interpretation of words or phrases.

Communication Breakdown

A failure in the process of exchanging information, leading to misunderstandings or conflict.