Obie accuses Portia,a broker with QT Financial Services,of fraudulently inducing him to invest in Riske Development Company,whose stock price declines in value.The reliance that gives rise to liability for fraud requires
A)a subjective,not an objective,statement.
B)misrepresentation of a fact knowing that it is false.
C)puffery.
D)seller's talk.

Question

Quizplus · Accepted Answer

The reliance that gives rise to liability for fraud requires the misrepresentation of a fact knowing that it is false. Therefore, choice B is the best answer. Choices C and D are not relevant to the legal concept of fraud, and choice A is inaccurate as both subjective and objective statements can give rise to liability for fraud.

Obie Accuses Portia,a Broker with QT Financial Services,of Fraudulently Inducing