Beryl owns a company that sells boomerangs, and Lucas is a potential customer. Beryl informs Lucas that each boomerang is hand carved, crafted out of rare wood, and thoroughly tested for accuracy and relevance. Although he was considering other boomerang suppliers, Lucas ultimately decides to buy Beryl's boomerang due to the impressive description of its craftsmanship. After completing the transaction, Beryl learns that her friend Yung switched out some of the boomerangs as a prank, and Beryl realizes that she actually sold Lucas a boomerang that was not up to company standards and probably does not even fly correctly. If Lucas sues Beryl for fraud, will Lucas be able to prove its case? No scienter was not present. O No - there was no misrepresentation of a material fact O No - Lucas did not suffer injury. O No-Lucas lacked justifiable relevance on Beryl's promises. O Yes - all five requirements for a finding of fraud are present.

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Beryl owns a company that sells boomerangs, and Lucas is a potential customer. Beryl informs Lucas
that each boomerang is hand carved, crafted out of rare wood, and thoroughly tested for accuracy
and relevance. Although he was considering other boomerang suppliers, Lucas ultimately decides to
buy Beryl's boomerang due to the impressive description of its craftsmanship. After completing the
transaction, Beryl learns that her friend Yung switched out some of the boomerangs as a prank, and
Beryl realizes that she actually sold Lucas a boomerang that was not up to company standards and
probably does not even fly correctly. If Lucas sues Beryl for fraud, will Lucas be able to prove its
case?
O No-scienter was not present.
O No - there was no misrepresentation of a material fact
O No - Lucas did not suffer injury.
O No-Lucas lacked justifiable relevance on Beryl's promises.
O Yes - all five requirements for a finding of fraud are present.
Transcribed Image Text:Beryl owns a company that sells boomerangs, and Lucas is a potential customer. Beryl informs Lucas that each boomerang is hand carved, crafted out of rare wood, and thoroughly tested for accuracy and relevance. Although he was considering other boomerang suppliers, Lucas ultimately decides to buy Beryl's boomerang due to the impressive description of its craftsmanship. After completing the transaction, Beryl learns that her friend Yung switched out some of the boomerangs as a prank, and Beryl realizes that she actually sold Lucas a boomerang that was not up to company standards and probably does not even fly correctly. If Lucas sues Beryl for fraud, will Lucas be able to prove its case? O No-scienter was not present. O No - there was no misrepresentation of a material fact O No - Lucas did not suffer injury. O No-Lucas lacked justifiable relevance on Beryl's promises. O Yes - all five requirements for a finding of fraud are present.
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