Discuss the meaning of "material fact" in fraud situations.
What will be an ideal response?
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.
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When a buyer covers, he or she may recover from the seller the:
A. goods the seller has failed to deliver. B. difference between the contract price and the market price. C. difference between the contract price and the cost of the substitute goods. D. reasonable value of the goods as decided by the buyer.
"A form of communication not paid for or under the control of the nonprofit marketing organization through which the organization must earn coverage" is:
a. public relations b. earned media c. earned advertising d. publicity e. blogging
What type of pricing objective would an organization use if it were in a favorable position and desired nothing more?
A. Return on investment B. Cash flow C. Profit D. Status quo E. Survival
Amelida expects to earn $145,000 of AGI and $125,000 of taxable income this year. She is concerned about underpayment penalties. Because of a substantial bonus, her prior year AGI was $155,000 and her taxable income was $135,000. Based on her fact pattern, which of the following scenarios will not allow her to avoid underpayment penalties?
A) The estimated payments total at least 90% of the tax due for the current year. B) The estimated payments total at least 100% of the tax due for the prior year. C) The estimated payments total at least 110% of the tax due for the prior year. D) The estimated tax is less than $1,000.