In: Operations Management
CONTRACT LAW
Mary wants to buy a car; she goes to her local used car dealership and is very interested in a used 2016 VW Eos. She asks the car salesman if the car has ever been in an accident. The car salesman doesn't know whether the car has been in an accident, but assures Mary that it has never been. If the car has in fact been in an accident and Mary buys the car, the salesman's statements may provide Mary with the ability to avoid the contract based on fraud.
true or false?
True.
The seller was not aware of the fact that whether the car has met with the accident or not, still he gave his words. This results in misleading with an intention hence come under fraudulent activity.A lie is a statement that is known to be untrue and is used to mislead.