Question
Which of the following statements, if it turns out to be false, is most likely to give rise to a successful rescission claim of fraud
Which of the following statements, if it turns out to be false, is most likely to give rise to a successful rescission claim of fraud or misrepresentation?
Multiple Choice
"Because Congress is going to be fighting over the debt ceiling and deficit reduction for the next ten years, I would buy these municipal bonds rather than Treasury bonds."
"If you buy this diamond ring, your fiance will believe you spent more money on it than you did."
"This doll should be a collector's item in 20 years, when you will be able to sell it at a significant profit."
"This house was built by hand by its original owner in 1845."
"I believe that it would be hard to find a Mustang convertible of this age with an interior this clean."
Gordon sells his car to Earnhardt. The car has a rust hole in the trunk. Earnhardt would not have bought the car if he had known about the hole. However, he did not discover it because Gordon carpeted the trunk to hide the hole. In order to rescind the contract on the basis of fraud, Earnhardt would have to prove that Gordon made a false assertion of fact. Can he?
Multiple Choice
Yes, Gordon concealed the hole by carpeting the trunk.
No, because Earnhardt had a duty to tear out the carpet and inspect the whole car.
No, because Gordon had no knowledge about the hole.
Yes, because Gordon has an affirmative duty to inspect the car and notify the buyer.
No, because Gordon never explicitly lied about the hole.
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