The Next Monet, Inc., operated art schools. At one of its classes, John Picasso (no relation to the great artist) was praised by an instructor for his potential as “the next Monet.” The instructor then sold John twenty half-hour art lessons for $20.00 each. Over the next three years, the instructor continued to praise John’s artistic potential, and John bought 4,000 hours of art lessons during that period. When John realized that he still couldn’t paint a bowl of fruit, he sued The Next Monet alleging fraudulent misrepresentation. Based on the decision in Vokes v. Arthur MurrayLinks to an external site., Inc., the court in this case would most likely rule in favor of
Group of answer choices
a. The Next Monet, because the instructor did not guarantee success.
b. John, because the instructor had superior knowledge of as to whether John had artistic potential.
c. None of the above.
d. The Next Monet, because the instructor’s opinion cannot be challenged by a court that knows little about art.
Answer is b. John, because the instructor had superior knowledge
of as to whether John had artistic potential.
This is Based on the decision in Vokes v. Arthur MurrayLinks, in
which it was decided
A statement of a party having superior knowledge may be regarded as
a statement of fact although it would be considered as opinion if
the parties were dealing on equal terms
The Next Monet, Inc., operated art schools. At one of its classes, John Picasso (no relation...
Case: Enron: Questionable Accounting Leads to CollapseIntroductionOnce upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant “E,” slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm laid off 4,000...
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...