Prita has worked for Milton Publishing, a large publishing company for 15 years as a staff editor. She is contacted by Sonnet Publishing, a small publishing company. Sonnet would like Prita to interview for a job opening. During the interview, the CEO of Sonnet offers Prita the Chief Editor position at $200,000 more per year than her current salary. This is a significant promotion for Prita, so she accepts the new job. After three months on the job, the CEO announces that the company will be closing. Prita learns that the CEO knew when he offered her the job that the company would be going out of business, but the company only needed her to complete projects Sonnet was contractually obligated to complete before closing its doors. Prita has

Question

Quizplus · Accepted Answer

Prita has a cause of action for fraud because the CEO of Sonnet knowingly misrepresented the nature of the job offer to Prita in order to induce her to accept the job. The CEO knew that the company was going to close, but did not disclose this information to Prita, who relied on the misrepresentation in accepting the job. This amounts to fraud.

Prita Has Worked for Milton Publishing, a Large Publishing Company