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Brandon Intended to Start a New Company

Question 16

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Brandon intended to start a new company.He issued a public statement regarding the proposed business venture.That document contained a false statement to the effect that Brandon had received government authorization to use nuclear power for his venture.In fact, authorization had not yet been granted and, indeed, was eventually refused.After reading Brandon's public statement, Abigail invested in the company.She later lost her investment when the company folded.She then sued Brandon for the tort of deceit.Which of the following statements is TRUE?


A) Brandon may be held liable even if he honestly believed that he had received government authorization to use nuclear power.
B) Brandon may be held liable if a reasonable person would have relied upon his statement, even if Abigail did not do so when she made her investment.
C) If Brandon is held liable, damages will be calculated to reflect the position that Abigail would have enjoyed if she had not been deceived, but they will not be calculated to reflect the position Abigail would have enjoyed if Brandon's statement had actually been true.
D) Brandon may be held liable even if he did not intend to deceive Abigail, as long as he did in fact deceive her.
E) The tort of deceit usually causes a court to award an injunction.

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