Briefly Describe the Legal Process of Determining Whether a Representation

question 63

Essay

Briefly describe the legal process of determining whether a representation is false or misleading.

---

Definitions:

Net Seller

An individual or entity that sells more of a security, commodity, or other assets than they buy in a given period.

Quasilinear Preferences

Preferences where the utility function is linear in one argument, often money, which allows for easy analysis of changes in welfare from different quantities of goods.

Consumer's Surplus

The variance between what consumers are prepared and capable of spending for a product or service and the actual sum they end up paying.

Price of X

The cost or monetary value associated with acquiring, producing, or selling a good or service named X.