Bob,an accountant,intentionally misstates a material fact to mislead Consolidated Industries,Inc.,a client.Consolidated justifiably relies on the misstatement to its detriment.Bob is most likely liable for

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Actual fraud occurs when someone intentionally misrepresents material facts with the intent to deceive another party, who then relies on these misrepresentations to their detriment. This scenario fits the definition of actual fraud, as Bob intentionally misstated a material fact to mislead Consolidated Industries, Inc., who justifiably relied on the misstatement to their detriment.

Bob,an Accountant,intentionally Misstates a Material Fact to Mislead Consolidated Industries,Inc