Identify two situations in which silence or nondisclosure constitutes a misrepresentation
Students may identify two of the following situations. Silence or nondisclosure constitutes a misrepresentation when: (a) a person fails to disclose a fact known to him, he knows that the disclosure of that fact would correct a mistake of the other party as to a basic assumption on which that party is making the contract, and nondisclosure of the fact amounts to a failure to act in good faith; (b) a party discovers that prior representations she innocently made are untrue and she does not correct the error; (c) the parties are not dealing at arm's length, such as when the transaction involves a fiduciary, or a person in a confidential relationship who owes a duty of trust, loyalty, and confidence to the other.
You might also like to view...
List and briefly discuss individuals involved in an organizational purchase decision
What will be an ideal response?
In the continuum of leadership behavior, ____ leadership represents a manager who simply makes a decision and announces it.
a. Boss-centered b. Task-centered c. Subordinate-centered d. Employee-centered
Which of the following is NOT an advantage of a sole proprietorship?
a. It is easy to form and to dissolve b. It has unlimited liability c. Profits are taxed as personal income d. The owner has complete control e. The owner keeps all profits
Assume that you want to read a description of a particular area of the law, along with one or more illustrations of how that law is applied. You will not find that type of material in
A) a citator. B) the Treasury Regulations. C) the Cumulative Bulletin. D) the Committee Reports.