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Diamond Dave of Wham Marketing decides to sell his marketing business to Fast Freddie. Freddie has a number of questions about the receivables of the

Diamond Dave of Wham Marketing decides to sell his marketing business to Fast Freddie. Freddie has a number of questions about the receivables of the business. Diamond Dave tells Freddie that all of the answers to his questions can be found in the corporate ledger for the business. Instead of inspecting the ledger, Fast Freddie hires an accounting firm to do an audit of the business. Relying on the results of the audit, Freddie buys the business. Which of the following explains why Freddie would fail to obtain rescission of his contract for misrepresentation?

Question 9 options:

a)

Diamond Dave did not make any misrepresentation in any way, and Freddie relied entirely upon his own investigation

b)

Diamond Dave made an innocent misrepresentation which is not actionable by Freddie

c)

Diamond Dave was not careless with his ledger, but by not conducting his own audit Diamond Dave misled Freddie into thinking he needed to conduct an audit

d)

Freddie affirmed Daves misrepresentation

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