Sara holds 1,000 shares of stock in B B & B, Inc., which she purchased, based upon the financial statements that Adam had prepared.She now realizes that the statements were false and wants to sue Adam for common law fraud.What is Adam's best defense?

Question

Quizplus · Accepted Answer

If the false statements were immaterial, they would not have influenced Sara's decision to purchase the stock, which is a key element in proving fraud.

Sara Holds 1,000 Shares of Stock in B B