Bob sells a car to Fred but Bob fails to mention that he disconnected the odometer, which reads 39,000 miles. Bob disconnected the odometer 20,000 miles ago. Which of the following is TRUE? a. duress.
b. undue influence.
c. puffery.
d. Fraud in the inducement.
e. none of the above.

d. Fraud in the inducement.

Explanation:

In this scenario, there was Fraud in the inducement. Fraud refers to the wrongful or criminal deception intended to result in financial or personal gain. Which in this case, by selling a car to Fred and claiming that it has 39,000 miles on (which it does not) they are deceiving Fred in order to make a sale. In doing so they are selling Fred a car that has 20,000 extra miles on it and possibly more internal damage than advertised by the Seller.

answer; post closing trial balance;