Sally is thinking about buying Linda's car.Linda knows that there is a leak in the brake line,and that after driving the car for a few minutes,the brake fluid will leak out and the car will have no brakes.Sally does not ask about it and Linda does not tell her.Sally buys the car,and while driving home,the brakes fail.Sally has an accident and the car is destroyed.Sally sues Linda for fraud to get her money back.Which is true?
A) This is not fraud,since there was no misrepresentation.
B) This is not fraud,since there was no reliance.
C) This is not fraud,since there was no scienter.
D) Silence in this situation is a misrepresentation.
E) Silence is never a misrepresentation.
Correct Answer:
Verified
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