Chapter 6

Question 1

deceit:

Answer 1

A tort in which party A makes a false statement with the intention of misleading party B; party B relies on the false statement, and, as a result, party B suffers a loss . Damages can be recovered for that loss

Question 2

fraudulent misrepresentation

Answer 2

A common law action based in contract law in which party A knowingly makes a false statement with the intention to mislead party B, and that statement induces party B to enter into a contract . In that case, party B may be able to rescind the contract and seek damages for any loss suffered

Question 3

rescind

Answer 3

To set aside a contract and put the party back into their pre-contract position

Question 4

negligent misrepresentation

Answer 4

A tort in which party A, owing a duty of care, makes an untrue statement to party B without sufficient care as to the statement’s accuracy, which party B then relies upon and suffers loss as a result .

Question 5

duty of care

Answer 5

A special close relationship between two parties that creates an obligation in tort law to take reasonable steps to avoid harming the other party .

Question 6

wrongful dismissal

Answer 6

A type of lawsuit by an employee against a former employer alleging that the employer terminated his or her contract without complying with the implied term in the contract requiring “reasonable notice . ”

Question 7

summary dismissal

Answer 7

Termination of an employment contract by an employer without notice to the employee in response to a serious breach of contract by the employee