Identify the correct statement in proving fraudulent misrepresentation.
A) Concealment is a more passive type of nondisclosure.
B) Nondisclosure of a fact operates as a misrepresentation under all circumstances.
C) The act of concealment should be direct.
D) Concealment may consist of diverting the other party from gaining the necessary knowledge.
E) Sales puffery is considered a fact.

Question

Quizplus · Accepted Answer

The correct statement is that concealment may consist of diverting the other party from gaining the necessary knowledge. This means that one party may actively divert the other party's attention from important information, which constitutes fraudulent misrepresentation. Options A, B, C, and E contain incorrect statements.

Identify the Correct Statement in Proving Fraudulent Misrepresentation