Moore, an employee of Lewpenski Motors, fraudulently tells Tolson, a prospective car buyer, that the used car he is considering has never been in an accident. If Tolson buys the car in reliance on Moore's false statement, both Moore and Lewpenski Motors are liable to Tolson for damages based on the fraudulent misrepresentation.

Question

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Moore's fraudulent misrepresentation makes him liable, and as his employer, Lewpenski Motors is also liable under the principle of vicarious liability for the actions of its employees performed within the scope of their employment.

Moore, an Employee of Lewpenski Motors, Fraudulently Tells Tolson, a Prospective