The Owner of a Dance Studio Tells Rupert If He

question 44

Multiple Choice

The owner of a dance studio tells Rupert if he takes just one dance lesson for $50,his life will change forever.Rupert takes the lesson and his life remains the same.The dance instructor's statements could be described as:

• A)Statements of fact.
• B)Fraud in the inception.
• C)Statements of opinion or sales talk.
• D)Fraud by concealment.

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Definitions:

Inside Information

Material, nonpublic, factual data that can be used to buy or sell securities at a profit.

Nonpublic

Information or entities not available or accessible to the general public, often pertaining to private or confidential matters.

Business Judgment Rule

A legal principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.

Duty of Due Diligence

An obligation to conduct a comprehensive appraisal of a business or individual prior to signing a contract, to avoid harm.