Kevin Goes to the Store to Purchase a Fully Automatic

question 5

Multiple Choice

Kevin goes to the store to purchase a fully automatic washing machine. He browses through several models of washing machines, but does not let the salesperson know that he wants a fully automatic model. While signing the sales contract, he does not notice that the model he is purchasing is a semi-automatic machine. After purchase, which of the following options does Kyle have?

• A) Exchange the machine with a fully automatic one and sue the store if it does not accept it.
• B) Demand a full cash refund from the store for fraud in concealment.
• C) Sue the store for its innocent misrepresentation.
• D) Keep the semi-automatic washing machine as he made a unilateral mistake.

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Definitions:

Due Diligence Meeting

A meeting conducted to carefully review and investigate a potential investment, business deal, or partnership to ensure all facts are known before proceeding.

Misstatements

False or inaccurate statements or entries, often referring to errors or inaccuracies in financial documents or reporting.

Registration Statement

A set of documents filed with securities regulatory bodies detailing information about a company's financial situation and the securities it wishes to issue.

Offering Circular

A document that provides detailed information about a company's operations, financial status, and terms of a securities offering to potential investors.