Scienter exists if
A)Martin knows that the transmission on his truck is defective,but does not tell this fact to potential buyers.
B)The racehorse that Karen is trying to sell has a genetic defect,but Karen does not know about the defect,and so she does not warn potential buyers.
C)Jake,a real estate agent,tells a client that he has a house that "will make all her dreams come true."
D)Jon forces Bill to sign a contract to sell Jon a car below market value.

Question

Quizplus · Accepted Answer

Scienter refers to the knowledge or awareness of wrongdoing. In this case, Martin knows that the transmission on his truck is defective but does not disclose this information to potential buyers. This constitutes scienter as he is aware of the issue and is intentionally hiding it from buyers.

Scienter Exists If