A Seller's Failure to Disclose a Serious Defect About a Product

question 3

True/False

A seller's failure to disclose a serious defect about a product for sale may give rise to an action for fraud.

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Definitions:

Service Component

Part of a product offering that involves the provision of labor or expertise, rather than a physical product, to satisfy customer needs.

Operating Expense

Expenses incurred in the normal operation of a business, including costs like rent, utilities, payroll, and materials, but excluding cost of goods sold.

Load Factor

Refers to the ratio of used or sold capacity to the total available capacity within a given period, often used in industries like transportation and energy to measure efficiency.

Yield

The term yield represents the earnings generated and realized on an investment over a particular period of time, expressed as a percentage based on the investment’s cost, its current market value, or its face value.