Scienter exists in which of the following cases?

Question

Quizplus · Accepted Answer

Scienter refers to the knowledge of wrongdoing or deception. In this scenario, Martin knows that the transmission on his truck is defective but does not disclose this information to potential buyers, which constitutes scienter.

B, C, and D do not involve scienter because Karen does not have knowledge of the genetic defect in her racehorse, Jake's statement about the house is subjective and does not necessarily indicate knowledge of wrongdoing or deception, and John forcing Bill to sign a contract is not necessarily indicative of scienter.

Scienter Exists in Which of the Following Cases