Sally Entered into a Contract to Purchase a Car at Acme

question 60

Essay

Sally entered into a contract to purchase a car at Acme Auto Sales. During a sales pitch, the Acme salesperson told Sally that the automobile was in excellent condition and that she could expect to drive it for many years because of its extremely low mileage. The odometer on the automobile read 10,000 miles. A week after her car purchase, Sally took the car to a trusted mechanic to get the engine checked out. The mechanic inspected the engine and told Sally that the car had many more miles on it than the odometer indicated. The mechanic told Sally that she had undoubtedly been the victim of odometer rollback.
What kind of fraud (intentional misrepresentation) was likely committed? Why?
What are the required elements of fraud and were all of these elements present in this scenario?

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Definitions:

Multiechelon Supply Chain

A complex supply chain structure involving multiple levels of suppliers, manufacturers, and distribution centers.

Integer Rule

A mathematical principle that states solutions to certain problems must be whole numbers, commonly applied in optimization and scheduling.

Distributor

An intermediary entity in the supply chain that buys products from manufacturers or wholesalers and sells them to retailers or direct to consumers.

Lot Sizing Decisions

The process of determining the optimal order quantity that minimizes total inventory costs, including ordering, holding, and stockout costs.