Which of the following facts must be proven for a plaintiff to prevail in a common law negligent misrepresentation action?
a. The plaintiff justifiably relied on the misrepresentations.
b. The misrepresentations were in writing.
c. The defendant made the misrepresentations with a reckless disregard for the truth.
d. The misrepresentations concerned opinion.
Explanation
Choice "a" is correct. To make out an action for negligent misrepresentation, the plaintiff must show both actual and justifiable reliance on the misrepresentation.
Choice "c" is incorrect. In negligent misrepresentation, the misrepresentation can arise out of conduct that is negligent (i.e., simple carelessness); reckless disregard for truth is considered the equivalent of fraud and is a much higher standard of misconduct.
Choice "b" is incorrect. Misrepresentations need not be in writing to give rise to a cause of action.
Choice "d" is incorrect. The misrepresentation must be of a material fact; misrepresentation of an opinion generally will not support a cause of action for negligent misrepresentation.
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