Will Wants to Sell a Car to Timothy

question 35

Multiple Choice

Will wants to sell a car to Timothy. Will tries to convince Timothy that it is a good buy. Will lies by telling him that the car has 10 months of free service left in order to convince him to buy it. The car actually has only 2 months of service left. Which of the following is true in this scenario?

• A) Will is guilty of fraud.
• B) Will is not guilty of fraud because he did not have commercial interests behind the lie.
• C) It is a case of mutual misunderstanding.
• D) Will cannot be tried by the court because the defendant's motivation is not known.

---

Definitions:

Direct Labour Cost

The expense incurred for workers who are directly involved in the production of goods or services.

Manufacturing Costs

Costs directly associated with the production of goods, including materials, labor, and factory overhead.

Conversion Costs

The combined costs of direct labor and manufacturing overhead incurred to convert raw materials into finished products.

Downstream Costs

Expenses incurred after the manufacturing process, such as distribution and marketing.