Frank sells Bob a car. Frank knows that Bob has a lot of kids and that one of th

Question

Frank sells Bob a car. Frank knows that Bob has a lot of kids and that one of the biggest features is Satellite radio because he can entertain his kids easily and always have music playing. Frank knows that there is a fee for Satellite radio but tells Bob that the car is fully equipped with that feature and never suggests that it isn't part of the car. Bob is beyond excited that he can finally have peace when he is driving and says great, so long as the car has satellite radio included we have a deal. A few days later Bob discovers it will cost him $40/month for satellite radio so he sues Frank for fraudulent misrepresentation. Can Bob win? A. Yes, because Frank knowingly made a false statement about a material fact that Bob relied on to his damage B. No, because Frank didn't know Bob would use the radio right away. C. No, it was Bob's responsibility to call the radio company before he bought the car to find out how much it would cost No, but he could sue him for misappropriation. National Data Corporation files a suit against Associated Services, Inc. to enforce a written contract between the parties. Parole evidence will be admitted to prove A. a subsequent modification of the written contract contemporaneous negotiations that vain the written contract C. prior negotiations that vary the written contract parole evidence cannot be used with contracts only in negligence cases

Explanation / Answer

11. The correct answer is option A.

Fraudulent misrepresentation is nothing but action of one person to induce another person to enter into a contract by referring to a false statement. In this case, Frank did not inform Bob that he need to pay satellite fee every month and told him that the car is fully equipped with satellite feature.

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