Pete, a broker, advises Ollie to invest in Rocky Road Inc. When the share price of Rocky's stock decreases, Ollie accuses Pete of fraud, claiming reliance on Pete's advice. The reliance that gives rise to liability for fraud requires

Question

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The reliance that gives rise to liability for fraud involves a misrepresentation of fact made knowingly that it is false. This is because fraud typically involves intentionally deceiving someone by misrepresenting a material fact, leading the other party to act upon it to their detriment.

Pete, a Broker, Advises Ollie to Invest in Rocky Road