With Regard to the Law Concerning Misrepresentation, Which of the Following

question 179

Multiple Choice

With regard to the law concerning misrepresentation, which of the following is true?

• A) The case law provides a remedy for a wildly exaggerated claim, such as "This is the best car ever built."
• B) A statement of opinion can be a one-sided mistake.
• C) A misrepresentation can be a False assertion of fact that induces (persuades) the party to contract, and need not be an assertion about a term of the contract.
• D) For fraudulent misrepresentation, the buyer could ask only for the equitable remedy of rescission.
• E) A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that the misrepresentation was true.

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Definitions:

Financial Accounting System

A financial accounting system is a structured process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time.

Value Basis

The method or approach used to determine the value of an asset, liability, or transaction.

Joint Costs

Costs incurred during the production of multiple products up until the point where these products become separately identifiable, making allocation necessary for cost accounting purposes.

Market Value

The current price at which an asset or service can be bought or sold in a marketplace.