Diamond Dave Decides to Sell His Donut Franchise to Fast

Multiple Choice

Diamond Dave decides to sell his donut franchise to Fast Freddie. Freddie has a number of questions about the receivables. Diamond Dave says that all of the answers to his questions can be found in the corporate ledger. Instead of inspecting the ledger, Fast Freddie hires an accounting firm to do a forensic audit of the business. Relying on the audit, Freddie buys the business. Which of the following explains why Freddie would fail to obtain rescission if he later decided he did not like the transaction?

A) Diamond Dave was not reckless with his ledger.
B) Diamond Dave's corporate ledger was not relied upon by Freddie.
C) Diamond Dave was not careless with his ledger.
D) Diamond Dave did not make any false statements.
E) all of the above