Emma wants to sell her motorcycle, and Friedrich is looking for a used motorcycle to buy. Friedrich takes it for a test drive. Emma knows that the clutch is going out on her motorcycle, the fuel filter is leaking, and the tires will need to be replaced soon. If she does not disclose this information to Friedrich and he cannot tell from his test drive, this is an example of
Social Studies · College · Wed Jan 13 2021
Answered on
The scenario you described, where Emma is aware of several significant issues with the motorcycle she's selling but does not disclose this information to Friedrich, is an example of "fraudulent misrepresentation."
Fraudulent misrepresentation occurs when one party intentionally hides or misrepresents material facts that would significantly affect the other party's decision-making process in a transaction. In this case, Emma's failure to disclose known issues with the motorcycle could be seen as deceitful and misleading, potentially leading Friedrich to make an uninformed purchase based on incomplete or false information.