Sheena knowingly and falsely tells Jenn that an automobile she is trying to sell has never been in a flood. In reliance upon Sheena's statement, Jenn buys the car. Sheena is liable to Jenn for fraudulent misrepresentation.

True/False

TRUE

Explanation:

Fraudulent misrepresentation refers to the false statement of someone for which two parties enters into an agreement. And the liability of the fraud requires the misrepresentation of the fact that it is false.

In the context, Sheena misrepresented and intentionally tells Jenn the vehicle is never been in flood. Jenns purchases the car relying on Sheena's statement. Now if Jenn finds out the truth, Sheena will be held liable for fraudulent misrepresentation.

Answer: TRUE. Sheena is liable to Jenn for fraudulent misrepresentation.

Explanation: Fraudulent misrepresentation can be defined as an act whereby an individual using false statement, dishonest account, exposition etc causes a party to enter into a contract. This involves intentionally using untrue and misleading statement during negotiation in order for another party to enter into a contract.

As seen in the definiton above, it can be concluded that Sheena is liable for fraudulent misrepresentation as she falsely tells Jenn that the automobile has never been in a flood in order to sell the automobile.