Business law Assignment Example | Topics and Well Written Essays - 500 words - 2

Business law - Assignment Example These financial crises led to privatization of banks in Iceland as well as the latter’s deregulation in the year 2000; following the bankruptcy of Lehman Brothers and the collapse of AIG. According to this film, corruption violated a number of rules of law. An example of a rule of law that was violated by corruption is misrepresentation. Misrepresentation refers to untrue statement of law or fact that induces a representee to sign a contract (Adamson 130). Representation occurs when the statement is made on the course of signing the contract, but if the statement turns out to be false, misrepresentation occurs. The three types of misrepresentation include negligent misrepresentation, fraudulent misrepresentation, and innocent misrepresentation. The case of the financial service industry entering the contract with Iceland is classed under fraudulent misrepresentation. Some criteria must be satisfied in order to amount to an actionable misrepresentation; first, there must be existence of a false statement of law or facts rather than an estimate of a future event or an opinion. If the representer is in a position to know the facts, a statement of opinion may amount to actionable misrepresentation. Consequently, unless the representer did not intend to carry out the stated intent, a statement of a future intent cannot amount to an actionable misrepresentation. False statement of law and silence will not amount to actionable misrepresentation. After the verification of a false statement, it is vital for the representee to explain how the untrue statement induced/relied on him/her to enter a contract. Lack of awareness of the false statement by the representee can result to no reliance or inducement. Another element of misrepresentation is disclosure duty with an example of the case summary of Turner versus Green (1895). This element discourages the act of duty to disclose facts, which would affect the decisions of the other party, making him/her not to enter a