Lew angrily accuses Mandy,a broker with New Financial Services,of fraudulently inducing him to invest in Open Pit Oil Company,whose wells are dry.The reliance that gives rise to liability for fraud is normally based on a statement of

Question

Quizplus · Accepted Answer

Liability for fraud is based on a false statement of fact. In this scenario, Lew is accusing Mandy of misleading him by falsely inducing him to invest in Open Pit Oil Company whose wells were dry, this makes B the correct answer. A statement of emotion (choice A), opinion (choice C) or puffery (choice D) would not be sufficient for a fraud claim.

Lew Angrily Accuses Mandy,a Broker with New Financial Services,of Fraudulently