Which type of statement would be considered fraudulent if untrue?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

A seller's silence on termite infestation is considered fraudulent if untrue because it pertains to a material fact that could significantly affect a buyer's decision. In many jurisdictions, sellers have a legal obligation to disclose any latent defects in the property, especially those that are not readily observable. Failing to disclose such information can result in liability for fraud, as it can mislead the buyer about the condition of the property.

The other options focus on statements that typically do not rise to the level of fraud. Sales puffery is often mere exaggeration and not considered a factual claim; a statement of opinion reflects subjective beliefs rather than objective truths; and predictions of future value, while potentially misleading, are not based on present facts and typically do not constitute fraud. Thus, in the context of fraud, the seller’s omission regarding a termite infestation stands out as information that should be disclosed to avoid misleading the buyer.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy