What is the effect of a negligent misrepresentation?
A)It is treated as an ethics violation,and is punishable per se as a white-collar crime.
B)It is treated the same as an innocent misrepresentation.
C)It is treated the same as a fraudulent misrepresentation.
D)It is treated the same as a non-material misrepresentation.
E)It is treated the same as an implied misrepresentation.

Question

Quizplus · Accepted Answer

In some contract negotiations,one party makes a statement of material fact that he thinks is true,but he is negligent in making the assertion.Such a negligent misrepresentation results when the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it.Even though there was no actual intent to deceive,the party making the false statement is treated in contract law as if the intent were present.The impact on the injured party of negligent misrepresentation is identical to that of fraudulent misrepresentation.Damages,however,tend to be greater for the injured party if fraudulent misrepresentation is at issue.

What Is the Effect of a Negligent Misrepresentation