Chapter 15

Question 1

adhesion contract

Answer 1

A “standard-form” contract, such as that between a large retailer and a consumer, in which the stronger party dictates the terms.

Question 2

innocent misrepresentation

Answer 2

A false statement of fact or an act made in good faith that deceives and causes harm or injury to another.

Question 3

latent defects

Answer 3

A defect that is not obvious or cannot readily be ascertained

Question 4

negligent misrepresentation

Answer 4

Any manifestation through words or conduct that amounts to an untrue statement of fact made in circumstances in which a reasonable and prudent person would not have done (or failed to do) that which led to the misrepresentation. A representation made with an honest belief in its truth may still be negligent due to (1) a lack of reasonable care in ascertaining the facts, (2) the manner of expression, or (3) the absence of the skill or competence required by a particular business or profession.

Question 5

scienter

Answer 5

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.

Question 6

voluntary consent

Answer 6

Voluntary agreement to a proposition or an act of another. A concurrence of wills