240. While sitting beside a swimming pool, a neighbor, Bob, a roof installer, tells you that you should buy stock in HotNet
because it is about to skyrocket in value. You invest all your money in the stock, which then drops to zero. You can
successfully sue Bob for:
a. negligent misrepresentation, but not for fraud
b. deceit, but not for intentional misrepresentation
c. negligent misrepresentation, but not for intentional misrepresentation
d. fraud, but not for fraudulent misrepresentation
e. none of the other choices
241. E Corp. sold five million toasters. The company never had a safety problem. One of its toasters, for no clear
reason, electrocutes the son of the woman who bought the toaster. In her suit against E Corp. for the death of her
son (a tort), the company is likely to be held:
a. not liable because one in five million is evidence of high quality, not a safety problem
b. not liable because the toaster was purchased by the woman, not her son, so there is no right of suit
c. not liable because of assumption of the risk
d. liable for failure to warn of dangers in use
e. liable in strict liability for producing a product with a defect that caused injury