chapter 14 Flashcards
Antonio sells an old station wagon to Ruby and tells her that it is in excellent condition. He did not bother to verify the statement of the previous owner that the car was making strange noises. Under these circumstances, Ruby could best contest the agreement on the grounds of __________.
Multiple Choice
mutual mistake
commercial impracticability
fraud
duress
fraud
Lori purchased a used car for $5,000. After purchasing the car, Lori felt as though she had made a mistake and had overpaid for the car. Which of the following statements is true?
Multiple Choice
Lori may rescind the contract based on a unilateral mistake.
Lori may rescind the contract based on a mutual mistake.
Lori may not rescind the contract based on a unilateral mistake.
Lori may rescind the contract within a reasonable period of time.
Lori may not rescind the contract based on a unilateral mistake.
LeBron wants to sell a car to Mark. LeBron tries to convince Mark that it is a good buy. LeBron lies by telling him that the car has 10 months of free service left in order to convince him to buy it. The car actually has only 2 months of service left. Which of the following is true in this scenario?
Multiple Choice
LeBron cannot be tried by the court because the defendant’s motivation is not known.
LeBron is guilty of fraud.
LeBron is not guilty of fraud because he did not have commercial interests underlying the misrepresentation.
It is a case of mutual misunderstanding.
LeBron is guilty of fraud.
If Roger sells Jan his home and tells her it is in “a great neighborhood,” Jan could probably show which of the following should she be burglarized a short time later:
Multiple Choice
fraud.
no offense.
mutual mistake.
misrepresentation.
no offense.
A mutual mistake is not grounds for rescission.
true or false
false
Courts today do not require a threat of physical injury for a finding of duress.
true or false
true
Contracts entered into as a result of misrepresentation are void.
true or false
false
Which of the following was the result in David D. Murray v. Dianne E. Murray, the case in the text in which the defendant expressed dissatisfaction with the terms of an agreement entered into after significant time spent in mediation and court hearings and sought a determination that she was subjected to duress?
Multiple Choice
That remorse about an agreement is insufficient to establish duress and that the agreement would be enforced.
That divorce in and of itself subjects a party to duress and that the defendant was entitled to have the agreement rescinded.
That mediation results in a presumption of duress and that the defendant was entitled to proceed to trial to establish her claim.
That although duress could have been shown earlier, it was too late at the final trial hearing to raise the issue.
That remorse about an agreement is insufficient to establish duress and that the agreement would be enforced.
To rescind a contract means to:
Multiple Choice
Cancel the contract
Enforce the contract.
Sue for damages for breach of contract
Affirm the contract
Cancel the contract
A fact that would contribute to a reasonable person’s decision to enter a contract is referred to as:
Multiple Choice
Significant
Material
Consequential
Substantial
Material
A mistake where only one of the parties to the contract are acting under a mistaken belief is referred to as a(n):
Multiple Choice
Unilateral mistake
Bilateral mistake
Plural mistake
Single mistake
Unilateral mistake
The original common law position on fraud by silence was __________.
Multiple Choice
a person has a duty to disclose all relevant information to the other party in a contract negotiation
post hoc ergo propter hoc
caveat emptor
commercial impracticability or frustration of purpose, depending on the facts of the case
caveat emptor
To prove a case of duress, modern courts require only __________.
Multiple Choice
that the threat be a wrongful one
undue influence
that the consideration exchanged between the contracting parties is unequal
statements that amount to puffery
that the threat be a wrongful one
Which of the following concepts was designed to protect the old, the timid and the physically and mentally weak from those who might attempt to take advantage?
Multiple Choice
Scienter
Corpus delicti
Undue Influence
Res ipsa
Undue Influence
An injured party does not have to prove a detriment (injury) to cancel a contract due to misrepresentation.
true or false
false
