Obie accuses Portia,a broker with QT Financial Services,of fraudulently inducing him to invest in Riske Development Company,whose stock price declines in value.The reliance that gives rise to liability for fraud requires

Question

Obie accuses Portia,a broker with QT Financial Services,of fraudulently inducing him to invest in Riske Development Company,whose stock price declines in value.The reliance that gives rise to liability for fraud requires​

Quizplus · Accepted Answer

The reliance that gives rise to liability for fraud requires misrepresentation of a fact knowing that it is false. In this case, Obie accuses Portia of fraudulently inducing him to invest in a company whose stock price declines in value, suggesting that Portia may have misrepresented facts or withheld important information about the investment. A subjective statement, puffery, or seller's talk would not necessarily constitute fraud in this context.

Obie Accuses Portia,a Broker with QT Financial Services,of Fraudulently Inducing