Asked by fatima khreis on Jul 06, 2024
Verified
Generally, the more knowledgeable the customer, the greater the chances the court will interpret an incorrect statement by a salesperson as an actionable misrepresentation rather than as sales puffery.
Actionable Misrepresentation
False or misleading statements that lead to a legal cause of action because they result in harm or losses.
Sales Puffery
Exaggerated or hyperbolic statements made by a salesperson, regarded as harmless and not legally binding, used to spark interest in a product or service.
- Differentiate between actionable misrepresentation and sales puffery based on customer knowledge.
Verified Answer
PP
Priya PednekarJul 10, 2024
Final Answer :
False
Explanation :
Courts often view sales puffery as exaggerated claims that no reasonable person would take literally, and this view is generally not influenced by the customer's level of knowledge. Misrepresentation, on the other hand, involves false statements of fact that the buyer relies on, and whether a statement is considered puffery or misrepresentation depends more on the nature of the statement than on the customer's knowledge.
Learning Objectives
- Differentiate between actionable misrepresentation and sales puffery based on customer knowledge.
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