Joe Sells His Business to Shirley

question 26

Multiple Choice

Joe sells his business to Shirley.During the negotiations,Joe negligently tells Shirley that the business has earned a profit for the last five years.In reality,the business operated at a loss for each of those years.However,Shirley did not hear Joe's misstatement.Shirley cannot rescind the contract because:

• A)Joe's false statement was negligent rather than intentional.
• B)Joe's misstatement was not material.
• C)Shirley did not actually rely on Joe's misstatement.
• D)an untrue assertion of fact was made.

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Definitions:

Grievance-Handling

The process through which workplace issues or complaints from employees are managed and resolved by an organization.

Union Members

Individuals who are part of a labor union, an organization that represents workers' interests in negotiations with employers.

Private Sector Employees

Individuals who work for businesses or organizations that are not owned or operated by the government.

Government Employees

Individuals employed by federal, state, or local government agencies, often subject to distinct rules and protections compared to private sector employees.