Question

Brady knows that the brakes on his car do not work, but he tells Celia, a potential buyer, that there are no problems with the car. On this assurance, Celia buys the car. On learning the truth, she may sue Brady for​______.

A. trade libel.
B. fraudulent misrepresentation
C. appropriation
D. conversion

Answer 1

B. fraudulent misrepresentation

Step-by-step explanation:

Brady knows that the brakes on his car do not work, but he tells Celia, a potential buyer, that there are no problems with the car. On this assurance, Celia buys the car. On learning the truth, she may sue Brady for fraudulent misrepresentation. Fraudulent misrepresentation is the false statement of facts or the condition of a thing that makes the other party to enter into a contract. For example, Brady intentionally omitted the fact about the faulty brakes in the car and even assured Celia that the car is in good shape which made Celia agree to buy it. It is fraudulent misrepresentation of facts.