Question

In: Economics

Q3: Discuss a factual situation where you believe that misrepresentation could occur by remaining silent. Q4:...

Q3: Discuss a factual situation where you believe that misrepresentation could occur by remaining silent.

Q4: Discuss a factual situation where someone may sign a contract or engage in a transaction as a result of the undue influence of another person.

Solutions

Expert Solution

3. A factual situation where you believe that misrepresentation could occur by remaining silent: A entered into a contract with B for selling a laptop to B. When B asked about the specifications A clearly mentions all the specifications except for the type of processors. When asked about whether it had AMD processors. He remained silent about that. B misinterpreted this silence as yes when actually it was not true.

4. A factual situation where someone may sign a contract or engage in a transaction as a result of the undue influence of another person:

Bert is Ernie's therapist. Bert is also involved in a couple of real estatedevelopment deals around town. Ernie starts talking to Bert about how he has heard about units for sale in the complex that Bert is invested in developing. Ernie isn't interested and doesn't feel it's appropriate for him to purchase a home at that time, but feels left behind by his friends who are all purchasing units or making other investments in the project. Bert uses his place of power over Ernie to convince him that it's a good step forward in his life also to make an investment in the project. This is to Ernie's financial detriment, but it increases the value of Bert's investment. Bert has used undue influence.

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