Pete, a broker, advised Ollie to invest in Rocky Road Inc. When the share price of Rocky’s stock decreases, Ollie accuses Peter of fraud, claiming reliance on Pete’s advice. The reliance that gives rise to liability for fraud requires .

Misrepresentation of a fact knowing it is false.

Explanation:

Fraud is defined as an intentional act of deception by an individual to unlawfully gain the property of another person.

For fraud to be committed facts must be misrepresented intentionally with the aim of deception.

In the given scenario Pete advised Ollie to invest in Rocky Road Inc. and the share price of Rocky’s stock decreases, Ollie accuses Peter of fraud.

If Ollie can show that Pete knew the price of the shares would fall, he can now accuse him of fraud.

answer; /// that is so (false);