A misrepresentation is material if:A) it would likely induce a reasonable person to enter into a transaction.B) the maker does not know it would likely induce the other party to enter into the transaction.C) it is made knowingly.D) it misrepresents a transaction's value by more than 20%.

Question

A misrepresentation is material if:A)  it would likely induce a reasonable person to enter into a transaction.B)  the maker does not know it would likely induce the other party to enter into the transaction.C)  it is made knowingly.D)  it misrepresents a transaction's value by more than 20%.

Prachi Agrawal · Accepted Answer

Final Answer : A, Explanation :  A misrepresentation is considered material if it would likely induce a reasonable person to enter into a transaction, as it significantly affects the decision-making process of the person being misled.

A misrepresentation is material if:

A) it would likely induce a reasonable person to enter into a transaction.
B) the maker does not know it would likely induce the other party to enter into the transaction.
C) it is made knowingly.
D) it misrepresents a transaction's value by more than 20%.

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Learning Objectives

Learning Objectives

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