After Precision Products, a publicly traded company, offered Karen Clement-Rowe a position as a project engineer, she accepted, sold her house and with her family moved to Michigan. One month later, faced by a major financial crisis, Precision Products terminated 150 employees, including Clement-Rowe. She has filed a suit in a Michigan state court against Precision Products, claiming among other things, misrepresentation by silence. She asserted that Precision Products had a duty to tell her of its troubled financial condition but that the company had told her nothing. She had not reviewed the company’s financial statements, but had specifically asked if the company was “in good shape financially.” She argues that Precision Products had intended to induce her to rely on the nondisclosure of the financial problems and accept the position. Precision Products responded that it had not been aware of the financial crisis until after Clement-Rowe had been hired. How will the trial court judge hearing this case analyze the following questions?
a. If the evidence at the trial shows that Precision Products was aware of its financial difficulties during negotiations with Clement-Rowe, will this prove misrepresentation by silence?
b. If the evidence at the trial shows that Precision Products was not aware of its financial difficulties during negotiations, can there still be misrepresentation by silence?