Question

the week 3 quiz covers material from chapters 12, 13, 14, and 16. the quiz is 10 questions with emphasis placed on chapters 12 and 14. you will have forty-five (45) minutes to complete the quiz in one sitting. the quiz is open-book and open-note.
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1
multiple choice 10 points
hank visits a used-car dealership to see a 2019 ford f-350 he saw advertised online. when hank asks to see the engine, the salesman tells him, “there’s no need to look under the hood, this truck is in like new condition.” trusting the salesman, joe purchases the f-350. three days later, the truck breaks down. at an independent repair shop, the diesel mechanic tells hank that the motor had at least 350,000 miles on it and it needs to be replaced as a connecting rod is broken. which of the following types of fraud has the dealer committed?
○ fraud by concealment
○ fraud in the factum
○ misrepresentation of law
○ fraud in the inducement

Explanation:

1. Analyze "fraud by concealment": This occurs when a party hides or fails to disclose a material fact. The salesman prevented Hank from seeing the engine (hiding the true condition of the truck's motor), which is a concealment of a material fact about the vehicle's condition.
2. Analyze "fraud in the factum": This involves deception about the nature of the transaction or document, not about the subject matter's quality. Here, the issue is about the truck's condition, not the nature of the purchase transaction, so this is incorrect.
3. Analyze "misrepresentation of law": This is misstating legal rules, which is not relevant here as the salesman lied about the truck's condition, not the law.
4. Analyze "fraud in the inducement": This is a misrepresentation of a material fact (not concealment) that induces a contract. But here, the salesman concealed the fact by preventing inspection, not making a false statement of fact (though his claim of "like new" is also a misrepresentation, but the act of hiding the engine is concealment). The key here is the concealment of the engine's condition by not allowing inspection, which fits fraud by concealment.

Answer:

A. fraud by concealment