The Intentional misstatement of a material fact

Fraud involves the intentional misstatement of a material fact. Such a statement is made (1) knowingly, (2) for the purpose of inducing the other party to act, (3) the other party acts based on the misstatement, and (4) the other party is harmed in reliance on the misstatement.

EXAMPLE: Daniel goes to Brake Boys and gets a quote to replace his brakes for $500. Daniel tells Gabriel about the quote. Gabriel then tells Daniel that he can replace his brakes for $300 including labor. Daniel says to Gabriel, “Will the parts be new?” to which Gabriel replies, “Yes, of course. I’ll leave the old parts in the trunk of your car for you as assurance.” However, Gabriel goes to the junk yard and buys two sets of used brakes for $50. Then Gabriel puts one set of brakes on the car and one in the trunk.

Daniel pays Gabriel $300 for the brakes and labor. One month later, Daniel is in a motor vehicle accident because his brakes did not work when he tried to avoid a barrier on the highway. Daniel sustained serious injuries which required three days hospitalization and on-going care. When Daniels’s car was towed, mechanics told him that his brakes are faulty.

Are the four fraud elements of fraud mentioned in the example above, if so, what are the elements?

Why does the example meets all four elements of fraud or not?