CFE – Law — Question 43

Which of the following is NOT a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

Answer options

• A. The victim suffered damages as a result of the misrepresentation.
• B. The victim failed to exercise due care in relying on the representation.
• C. The victim relied on the misrepresentation.
• D. The defendant made a false statement (i.e., a misrepresentation of fact).

Correct answer: B

Explanation

The correct answer is B because a claim for fraudulent misrepresentation does not require the victim to show that they failed to exercise due care; instead, it focuses on the false statement and the victim's reliance on it. Options A, C, and D are essential elements that must be proven to establish such a claim.