11. Obie accuses Portia, a broker with QT Financial Services, of fraudulently
inducing him to invest in Risky Development Company, whose stock price
declines in value. The reliance that gives rise to liability for fraud requires
a. a subjective statement.
b. misrepresentation of a fact knowing that it is false.
c. puffery.
d. seller’s talk.
12. Jim is an appliance salesperson. To make a sale, he asserts that a certain
model of a Kitchen Helper refrigerator is the “best one ever made.” This is
a. fraud if the statement is the truth.
b. fraud if Jim believes that this statement is not true.
c. fraud if Jim is stating his opinion, not the facts.
d. not fraud.
13. Dom, an EZ Baked Goods salesperson, follows Flora, a salesperson for Goody
Pastries, Inc., as she attempts to make sales to food stores. Dom solicits each
of Flora’s customers. Dom is most likely liable for wrongful interference with a
a. bargaining relationship.
b. business relationship.
c. contractual relationship.
d. customer relationship.