Fact Pattern 14-A1

question 1

Multiple Choice

Fact Pattern 14-A1
Dina, an employee of Eagle Industries, is injured in a work-related accident. Based on the diagnosis of Frank, a doctor, Dina accepts $50,000 from Eagle and waives the right to future claims. Frank's diagnosis later proves to have been wrong.
-Refer to Fact Pattern 14-A1. Dina may, according to the deci?sion in Case 14.1, Roberts v. Century Contractors, Inc.,

• A) obtain damages from Eagle for nonfraudulent misrepresentation.
• B) obtain damages from Frank for fraudulent misrepresentation.
• C) recover nothing because Dina waived the right to future claims.
• D) set aside the settlement with Eagle due to a mistake of fact.

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Definitions:

Purchased Lots

Refers to parcels or quantities of goods acquired by a company, often used in reference to real estate or bulk purchases of inventory.

Relevant Cost

Costs that will be affected by a decision and will have an impact on the future.

Variable Production Cost

Charges that fluctuate in line with production levels, such as direct labor and materials used.

Split-off

A point in the production process where multiple products are derived from a common input, and separate paths of further processing or sale are identified.