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Jennifer Was Shopping at Good Deal Auto Sales

Question 50

Multiple Choice

Jennifer was shopping at Good Deal Auto Sales.The salesperson showed her one particular car that caught her fancy.The salesperson said that the car was a 1999 model,only had 25,000 miles,had been overhauled one year ago,and was the best buy for the money anywhere in town.Jennifer knew the car was a 1998 model,but otherwise she believed the salesperson.She bought the car.Later it is discovered that the car had 125,000 miles,had been overhauled 14 months ago,and that a better buy existed at another dealer.Each of these things makes the car worth much less than Jennifer paid for it.The salesperson and the dealership knew all these things.Jennifer sues for fraud.Which of the following best describes this situation?


A) The statement concerning the overhaul is a material misstatement.
B) The statement concerning the model year constitutes actionable fraud.
C) The statement concerning being the best buy in town for the money constitutes actionable fraud.
D) The statement about the mileage constitutes actionable fraud.
E) Both A and D are correct.

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