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Sean sees a newspaper advertisement offering a 1985 classic muscle car with 5,000 miles on it for only $5,0 Since this is well below the value of the car, Sean calls and goes to look at the car. The car is in beautiful shape. Sean asks about the mileage and is told that the car was only driven on Sundays and it truly has only 5,000 miles. Sean buys the car. Assume that the 5,000 miles are truly accurate but they were all drag racing miles a quarter mile at a time. This puts extreme pressure and extended wear on the engine so the original miles are truly irrelevant.
This extreme wear and tear equate to over 100,000 miles of normal driving.
The seller has committed an active fraud.
The seller has committed a passive fraud.
The seller has committed a misrepresentation.
There is no fraud or misrepresentation because Sean was negligent for not asking about the way the 5,000 miles were accumulated.
You recently put in place some new procedures and technology to make to service customers better and increase sales. Pat was the only one struggling; at least you thought so. You were wondering what your options are.
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Was it ethical for the National Enquirer to try to avoid suit in California? Are the defendants subject to suit in California? Explain why or explain why not?
Real discount rate is 8 percent. Corporation tax rate is 34%. Sanders have or ongoing profitable operation. Should company accept.
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