Description
ABC and DEF enter into negotiation in an attempt to resolve a dispute regarding DEFs failure to provide a specialized part of ABCs machinery under contract. At the negotiation proceeding, Greg, DEFs attorney, said that DEF did not manufacturer the part because ABC’s president told them he feared an economic downturn would shut down ABC. In fact, ABCs president merely mentioned that problems would arise If a slight economic downturn was forthcoming but did not say anything about ABC having to close down. Has Greg violated his duty of truthfulness in his characterization of ABCs president statement?.
Explanation & Answer
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Duty of truthfulness
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Greg has violated his duty of truthfulness in his characterization of ABC’s president
statement. In this case, Greg, DEF’s attorney misrepresented the statement of ABC’s president.
Greg failed to act truthfully in his negotiation with ABC. He misrepresented ABC’s statement
regarding the effect of a slight economic downturn on the operations of ABC. The fact is that
ABC’s president statement expressed that only mere problems would emerge in the event of a
small economic hardship. The president’s statement did not explicitly mention close down of
ABC. However, in his statement, Greg misquoted the president’s statement by falsely claiming
that ABC president told them there w...
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