Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if:

Question

Quizplus · Accepted Answer

Fraud occurs when there is a false representation of a material fact made knowingly or with reckless disregard for its truth, with the intent to induce another party to rely on it, and that party does reasonably rely on it to their detriment. In this scenario, Jack falsely described the car as having been driven only 12,000 miles, which is a material fact. Jim reasonably relied on Jack's statement when he purchased the car, and he suffered a detriment (i.e., paid more for the car) as a result. Therefore, fraud occurred. The other choices are not relevant to determining whether fraud occurred.

Jack Sells Jim a Used Car That Jack Falsely Described