While on a cruise, DePrince inquired about the price of a 20-carat diamond in the ship's gift shop. After confirming with the cruise line's corporate office, the sales person told DePrince that the price was $235,000. DePrince's traveling companions, who both happened to be gemologists, told him that the price was too good to be true: A diamond that large should cost at least $2 million. DePrince ignored their advice and purchased the diamond. Soon after the sale was completed, the cruise line realized that the $235,000 price quote was per carat, not the total price. What kind of mistake did the cruise line make? Can the cruise line void the transaction?
Answers: 2
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While on a cruise, DePrince inquired about the price of a 20-carat diamond in the ship's gift shop....
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