A written request to a court to settle a dispute is called a(n):. ...

[vHAUNG6011]

A written request to a court to settle a dispute is called a(n):.
 A) complaint or petition
 B) discovery
 C) trial
 D)plaintiff

Question 2

A young stockbroker was rather overwhelmed by a flood of new clients. Assunta, one of his clients, had purchased XYZ Corp stock through the broker at a price of 35 per share. The price had gone down to 29 by the time Assunta telephoned the broker. Assunta told the broker that she wanted to sell the stock if it went below 30 and inquired as to the price. The broker did not check the price, but thinking it could not have fallen below the 30 threshold, simply reassured Assunta that it was still in the low 30s. Marta, Assunta's cousin, also had purchased XYZ stock at 35 per share and made a similar call to the broker and received the same response. Marta, however, coincidentally saw the price on a stock ticker tape when she hung up and realized the broker had made an error. Both Assunta and Marta held the stock and did not sell. Later that same day, the stock price fell an additional 7 per share. Facing sizable losses, both Assunta and Martha decided to sue for fraud when Marta told Assunta of the broker's misstatement. Discuss the probable outcome of the lawsuits.

[harveenkau8139]

Answer to Question 1

A

Answer to Question 2

The broker's reckless disregard for the truth constituted fraud in the case of Assunta, because it was a material misstatement of fact that was relied upon causing damages.
Marta, however, will not be successful, because she did not rely on the misstatement and knew that it was false.