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:

Efferent

Nerve fibers that convey impulses away from the central nervous system to effectors (muscles or glands), initiating action or movement.

Pyramidal

Relating to a structure in the shape of a pyramid or reminiscent of pyramidal construction, often used in architectural or anatomical contexts.

Electrochemical Communication

The process of transmitting messages between neurons through electrical and chemical signals.

Nervous System

The body’s electrochemical communication circuitry.