Which of the Following Statements About Misrepresentation Is Most Likely

question 34

Multiple Choice

Which of the following statements about misrepresentation is most likely true?

• A) When salespeople loosely describe their product or service in glowing terms, those statements can be relied upon by the potential buyer.
• B) Generally, the more knowledgeable the customer, the greater the chances the court will interpret an incorrect statement by a salesperson as an actionable misrepresentation.
• C) When a salesperson makes claims of a "factual nature" regarding a service's inherent capabilities, the law does not treat these comments as statements of fact and warranties.
• D) A salesperson's opinion about the quality of the product being sold is known as sales puffery and is legally actionable.
• E) Even if the salesperson misrepresentation statement is made innocently, many courts will award damages to the customer.

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Definitions:

Departmentalization

The method of dividing an organization into distinct departments or units, each specializing in a particular function or area of operation.

Machine Bureaucracy

A highly structured, formal organization model, optimized for efficiency and characterized by a clear hierarchy, division of labor, and a focus on routine, repetitive tasks.

Simple Structure

An organizational design characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

Adhocracy

An organizational structure characterized by flexibility, employee empowerment, and an emphasis on innovation and problem-solving rather than hierarchy and strict procedures.