Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.

Question

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.​

Quizplus · Accepted Answer

Reliance on a misrepresentation is generally not justified, regardless of whether the misrepresentation is obviously extravagant or not. In fact, a misrepresentation that is obviously extravagant might be more likely to put a buyer on notice that it is not true, and therefore less likely to be relied on.

Reliance on a Misrepresentation Is Justified If the Misrepresentation Is