A misrepresentation is material if:
A)it would likely induce a reasonable person to enter into a transaction.
B)the maker knows it would likely induce the other party to enter into the transaction.
C)it is made knowingly.
D)Either (a) or (b).

Question

Quizplus · Accepted Answer

A misrepresentation is material if it would likely induce a reasonable person to enter into a transaction. However, it is also material if the maker knows it would likely induce the other party to enter into the transaction. Therefore, both options (a) and (b) are correct, making choice D the best answer. The third option, (c), is not always true as a misrepresentation can be made unknowingly but is still material.

A Misrepresentation Is Material If