Actionable fraud would be likely to be based on falsity of:
A) a car owner's statement that,"This car is the best buy you will find."
B) a realtor's statement that,"The contractor used 25-year warranted shingles on the roof."
C) an art dealer's statement that,"This painting will increase in value."
D) a stockbroker's statement that,"This stock should double in price within six months."

Question

Quizplus · Accepted Answer

B) is correct because it involves a specific, verifiable claim about the product's quality (25-year warranted shingles) that, if false, could directly mislead a buyer and result in financial loss. The other options are subjective opinions or speculative predictions, which are not typically grounds for actionable fraud.

Actionable Fraud Would Be Likely to Be Based on Falsity