Brandon Intended to Start a New Company

question 16

Multiple Choice

Brandon intended to start a new company.He issued a public statement regarding the proposed business venture.That document contained a false statement to the effect that Brandon had received government authorization to use nuclear power for his venture.In fact, authorization had not yet been granted and, indeed, was eventually refused.After reading Brandon's public statement, Abigail invested in the company.She later lost her investment when the company folded.She then sued Brandon for the tort of deceit.Which of the following statements is TRUE?

• A)Brandon may be held liable even if he honestly believed that he had received government authorization to use nuclear power.
• B)Brandon may be held liable if a reasonable person would have relied upon his statement, even if Abigail did not do so when she made her investment.
• C)If Brandon is held liable, damages will be calculated to reflect the position that Abigail would have enjoyed if she had not been deceived, but they will not be calculated to reflect the position Abigail would have enjoyed if Brandon's statement had actually been true.
• D)Brandon may be held liable even if he did not intend to deceive Abigail, as long as he did in fact deceive her.
• E)The tort of deceit usually causes a court to award an injunction.

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Definitions:

Social Contract Ethical Theory

A theory in philosophy that posits the legitimacy of authority of the state over the individual is grounded in a contractual agreement among individuals in a society.

Ethical Lifestyle

A way of life or behavior that is conducted according to principles of what is morally right or acceptable, often involving conscious choices that promote sustainability and minimize harm to others.

Ethic Of Responsibility

A moral philosophy emphasizing the importance of taking responsibility for the consequences of one's actions, particularly in relation to others and society.

Laws

The system of rules which a particular country or community recognizes as regulating the actions of its members and which it may enforce by the imposition of penalties.