Damages as a Remedy Will Not Be Available in Which

question 34

Multiple Choice

Damages as a remedy will not be available in which of the following situations?

• A)Jones makes a negligent misstatement, persuading Smith to enter a contract with him.
• B)Jones, although being careful, makes an innocent misrepresentation, persuading Smith to enter a contract with him.
• C)Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him.
• D)A false statement made by Jones becomes a term of the contract.
• E)None of the above

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Definitions:

Intercompany Profit

Profits generated from transactions between companies within the same corporate group, which may be eliminated during consolidation.

Net Increase/Decrease

This refers to the overall rise or fall in a particular financial metric or account over a specified period.

Bonds Payable

A long-term debt instrument issued by a company to investors, representing the amount it is obligated to pay back with interest.

Fair Value

A market-based measurement that reflects the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties.