A Salesman Innocently Misrepresented a Fact About a New Printer

question 42

Multiple Choice

A salesman innocently misrepresented a fact about a new printer to a customer.He honestly believed that his statement was true and was not careless.Although this fact was not about a term of the contract, it did induce the customer to buy that printer.The next day, the customer learned the true facts and wanted to return the printer.If the store refused to take it back and the customer sued, which of the following would be the most likely result?

• A)The buyer's case would be dismissed
• B)An injunction
• C)An order of rescission
• D)An award of damages
• E)An order of specific performance

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Definitions:

Face Value

The nominal value stated on a financial instrument, such as a bond or stock certificate.

Brokerage Fees

Charges levied by a broker for facilitating transactions between buyers and sellers.

Unrealized Loss

A loss that occurs on paper when the current market value of an investment is lower than its cost but has not been actualized through a sale.

Available-For-Sale Securities

Financial assets held by a firm that can be sold in the financial markets, not classified as held-to-maturity or trading securities.