Discuss the meaning of "material fact" in fraud situations


Fraud begins when a party to a contract represents something that is factually wrong. The statement must first be a fact, not an opinion. "This car is the best" would not be the type of statement that should be relied upon. Contrast that type of statement with, "this car gets 28 miles per gallon." This is a statement of fact upon which someone would rely. The statement must also be material; that is, important in the decision to enter into the contract. For the fact to be material, the maker must have expected the other party to rely on the statement, and the other party must have relied upon it.

Business

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Explain, using three qualities, why some innovations are adopted and others are not.

What will be an ideal response?

Business

When a company carries out a stock split, the company usually

A) receives less cash than market value. B) receives more cash than market value. C) issues more shares of stock. D) retires shares of stock.

Business

The par value of stock refers to its value on the open market

Indicate whether the statement is true or false

Business

In conversations with her employees, Cynthia is managing meaning by using talk to get followers to act by using metaphors, jargon, and stories in her communication. Which of the following best describes Cynthia’s communication?

A. communication apprehension B. voice C. framing D. upward communication

Business