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Ed Wants to Sell His Car to Bob, a Neighbor

Question 2

Multiple Choice

Ed wants to sell his car to Bob, a neighbor.Ed tells Bob that the car is in excellent condition.Ed does not know that there is a serious crack in the crankshaft.Bob buys the car.A week later he is in an accident caused by the defective crankshaft.He sues Ed for misrepresentation.________

A) Bob's misrepresentation action will succeed because there was scienter.
B) Bob's misrepresentation action will fail because there was no scienter.
C) Bob's misrepresentation action will succeed because Ed was careless in failing to tell Bob about the crack in the crankshaft.
D) Bob's misrepresentation action will fail because Ed is not a merchant.

Correct Answer:

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