Adam Wants to Buy a Six-Passenger Car

question 6

Multiple Choice

Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports car Adam sees on the car lot would be just perfect for six people. Adam test drives the car and then buys it.

• A) Adam has a valid cause of action for fraud.
• B) Adam is not entitled to relief based on fraud because he was not justified in relying upon the salesman's representation that the car would seat six people.
• C) The element of scienter is missing in this fact situation.
• D) The salesman is in a confidential relationship with Adam.

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Definitions:

Homogeneous Oligopoly

A market structure where a few firms offer products or services that are similar and thus, highly substitutable.

Identical Cost

A scenario in which all firms in a market face the same costs of production, leading to uniform pricing strategies.

Demand Curves

A curve representing the correlation between the amount of a product consumers are ready to purchase and its price, assuming other factors remain constant.

Zero-Sum Game

In game theory, a game in which the gains (+) and losses (−) add up to zero; one party’s gain equals the other party’s loss. A strategic interaction (game) between two or more parties (players) in which the winners’ gains exactly offset the losers’ losses so that the gains and losses sum to zero.