The Law Would Most Likely Impose a Duty of Disclosure

question 50

Multiple Choice

The law would most likely impose a duty of disclosure in a transaction between:

• A) a salesperson and customer.
• B) business partners.
• C) a contractor and a homeowner seeking bids on repairing a roof.
• D) a seller of real property and a potential buyer who knows the property has greater value than the seller realizes.

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Definitions:

Word-of-Mouth

The process by which people share information and opinions about products, services, or experiences, influencing the attitudes and behaviors of others.

Product Life Cycle

The stages that a product goes through from introduction to the market, growth in sales, maturity, and eventual decline.

Marketer

A professional involved in identifying market opportunities, developing strategies, and creating and implementing marketing plans to promote products or services.

Experience Curve

The concept that costs decline and efficiency improves as a company gains more experience in production and operations over time.