George is considering the purchase of a manufacturing supply company. While discussing the company and the operations with Sally; George also inquired about the company customer accounts and the status of the accounts payable and whether the company was profitable. Sally stated, I am unsure, but it is my opinion that the accounts are good and the company was profitable. I will look into the accounts by the end of the week and if you do not hear from me you can assume things are good. After the end of the week and even into Monday afternoon, George hears nothing. George then signs the contract to purchase the company, but when George gets the account files he is furious when he realizes that the company has lost money in the past 7 months!

Would Salllys conduct amount to a misrepresentation?

If her conduct is or is not, explain why or why not and the type of misrepresentation you feel that Sally made and what rule supports your conclusion in detail.