When Lester learned the truth, he sued MacKintosh Motors and the salesperson for damages for fraud. They raised the defense that the salesperson did not know the statement was false and had not intended to deceive Lester. Did the conduct of the salesperson constitute fraud

Question

Business

Hadassah

26 June, 08:49

When Lester learned the truth, he sued MacKintosh Motors and the salesperson for damages for fraud. They raised the defense that the salesperson did not know the statement was false and had not intended to deceive Lester. Did the conduct of the salesperson constitute fraud

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Answers (1)

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Valentin Powers · Answer 1

Yes, the salesperson commit a fraud.

Explanation:

When an employee works in an organization, then the person represents the organization. Whatever the employee says, is a like a statement guaranteed by the company.

Salesperson makes a false statement in front of the buyer deliberately. Though he was unaware about the history of the car, he says that he did not know the fact. The question was clearly to him and without any hesitation he s=gave the answer. Thus, in this case fraud is committed by the sales person of Mackintosh Motors, though he did not intend it.