The Case: SmartCo is a company producing and selling washing machines. Jim is working asa sales officer in this company. His obligation is to directly communicate with customers andto sell them products of the company. Tom is a customer of SmartCo. Wago Inc. is a businesspartner of SmartCo.Question 1:Tom comes to Jim to buy a washing machine. Jim informs Tom that their company has recentlyreceived a consignment of new machines. The management of the company instructed allofficers, including Jim, to tell customers that all details in their machines are of highestunbreakable quality. This is what Jim tells Tom. Having trust in Jim's words Tom buys awashing machine – it breaks on the first day of its usage. It occurs that it consists of low-qualitydetails. When Tom returns to Jim with a complaint, Jim responds that he had no knowledge ofany defects in the washing machines he sold.Did Jim 's conduct constitute fraud? Explain your answer.What is the difference between fraud and negligent misrepresentation?

Did Jim's conduct constitute fraud? Explain your answer. In my opinion, Jim's conduct with his…

Answered: Did Jim's conduct constitute fraud?…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Did Jim's conduct constitute fraud? Explain your answer. What is the difference between fraud and negligent misrepresentation?