Question 1

Intentional misrepresentation is commonly referred to as ________.

Accepted Answer

A)  erroneous misrepresentation
B)  fraud
C)  duress
D)  undue influenceE) B) and D)
F) B) and C)

Question 2

A misrepresentation is considered fraud even if it is made without intent to deceive another party.

Accepted Answer

A) True 
 B)False

Question 3

Contracts involving fraud in inducement are ________.

Accepted Answer

A)  valid
B)  void
C)  voidable
D)  non-rescindableE) None of the above
F) C) and D)

Question 4

For a situation to be considered "undue influence," the persuasion by the wrongdoer must overcome the free will of the innocent party.

Accepted Answer

A) True 
 B)False

Question 5

While signing a contract,one of the parties misinterpreted a legal clause.Neither of the parties is a legal professional.Which of the following statements holds well in this scenario?

Accepted Answer

A)  The party who misinterpreted the law is actionable for fraud.
B)  The party who misinterpreted the law may rescind the contract.
C)  The party who misinterpreted the law is not actionable for fraud.
D)  The contract is declared unenforceable as the law has been misinterpreted.E) A) and D)
F) C) and D)

Question 6

Joe buys a trailer from a used-car dealership.On enquiry,the dealer tells him that the trailer is in great condition.However,three days later,the trailer breaks down.Investigation by Joe reveals that the trailer had seven previous owners and that the engine has been replaced thrice.An automobile expert tells Joe that the trailer is dangerous.Which of the following frauds would the dealer be liable for?

Accepted Answer

A)  fraud in the factum
B)  fraud in the inducement
C)  fraud by concealment
D)  misrepresentation of lawE) All of the above
F) B) and C)

Question 7

Alice offers Richard a chance to work in her affiliate marketing program which,she claims,will make him a millionaire in three months.Richard makes the "mandatory investment" of $12,000 and becomes an affiliate.Soon,he realizes that such a program does not exist and that Alice has disappeared with the money.This is an instance of ________.

Accepted Answer

A)  misrepresentation of law
B)  fraud in the factum
C)  fraud in inducement
D)  duressE) All of the above
F) A) and D)

Question 8

An ambiguity in a contract may constitute a mutual mistake of a material fact.

Accepted Answer

A) True 
 B)False

Question 9

Misrepresentation of law is a fraud that occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not.

Accepted Answer

A) True 
 B)False

Question 10

To prove fraud,which of the following elements must be shown?

Accepted Answer

A)  The innocent party knew the wrongdoer.
B)  The innocent party was the one who detected fraud.
C)  The wrongdoer assumed a false identity.
D)  The wrongdoer intended to deceive the innocent party.E) A) and B)
F) A) and D)

Question 11

To be actionable as fraud,the misrepresentation must have been the sole factor in inducing the innocent party to enter into the contract.

Accepted Answer

A) True 
 B)False

Question 12

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Accepted Answer

A) True 
 B)False

Question 13

Intentional misrepresentation is considered fraud.

Accepted Answer

A) True 
 B)False

Question 14

Lucy wants a divorce from her husband but he wants to stay in the marriage.She threatens to bring a false criminal lawsuit claiming physical abuse from him if he does not sign the divorce papers.This is an instance of ________.

Accepted Answer

A)  fraud
B)  duress
C)  undue influence
D)  scienterE) A) and C)
F) A) and B)

Question 15

Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Accepted Answer

A) True 
 B)False

Question 16

Explain undue influence with an example.

Accepted Answer

Undue influence occurs when one person (...

Question 17

________ is a situation in which one person takes advantage of another person's mental,emotional,or physical weakness and unduly persuades that person to enter into a contract.

Accepted Answer

A)  Duress
B)  Undue influence
C)  Fraud
D)  ScienterE) B) and D)
F) A) and C)

Question 18

If there has been a mutual mistake,the contract cannot be rescinded.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of duress?

Accepted Answer

A)  It is liable for fraud.
B)  A threat should involve physical harm for it to be actionable as duress.
C)  It is a threat issued to make another person sign a contract.
D)  Intoxicating a person to sign a contract is considered duress.E) None of the above
F) A) and B)

Question 20

If an innocent misrepresentation has been made,the aggrieved party may sue for damages.

Accepted Answer

A) True 
 B)False

Exam 13: Genuineness of Assent and Undue Influence

If there has been a mutual mistake,the contract cannot be rescinded.

Correct Answer
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Contracts involving fraud in inducement are ________.

Correct Answer
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For a situation to be considered "undue influence," the persuasion by the wrongdoer must overcome the free will of the innocent party.

Correct Answer
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If an innocent misrepresentation has been made,the aggrieved party may sue for damages.

Correct Answer
verified

Correct Answer
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Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct Answer
verified

Lucy wants a divorce from her husband but he wants to stay in the marriage.She threatens to bring a false criminal lawsuit claiming physical abuse from him if he does not sign the divorce papers.This is an instance of ________.

Correct Answer
verified

An ambiguity in a contract may constitute a mutual mistake of a material fact.

Correct Answer
verified

To prove fraud,which of the following elements must be shown?

Correct Answer
verified

________ is a situation in which one person takes advantage of another person's mental,emotional,or physical weakness and unduly persuades that person to enter into a contract.

Correct Answer
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Which of the following is true of duress?

Correct Answer
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To be actionable as fraud,the misrepresentation must have been the sole factor in inducing the innocent party to enter into the contract.

Correct Answer
verified

Intentional misrepresentation is commonly referred to as ________.

Correct Answer
verified

While signing a contract,one of the parties misinterpreted a legal clause.Neither of the parties is a legal professional.Which of the following statements holds well in this scenario?

Correct Answer
verified

Explain undue influence with an example.

Correct Answer
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Undue influence occurs when one person (...
View Answer

Intentional misrepresentation is considered fraud.

Correct Answer
verified

A misrepresentation is considered fraud even if it is made without intent to deceive another party.

Correct Answer
verified

Correct Answer
verified

Misrepresentation of law is a fraud that occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not.

Correct Answer
verified

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Correct Answer
verified

Exam 13: Genuineness of Assent and Undue Influence

If there has been a mutual mistake,the contract cannot be rescinded.

Correct AnswerverifiedShow Answer

Contracts involving fraud in inducement are ________.

Correct AnswerverifiedShow Answer

For a situation to be considered "undue influence," the persuasion by the wrongdoer must overcome the free will of the innocent party.

Correct AnswerverifiedShow Answer

If an innocent misrepresentation has been made,the aggrieved party may sue for damages.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Fraud in the factum occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing.

Correct AnswerverifiedShow Answer

Lucy wants a divorce from her husband but he wants to stay in the marriage.She threatens to bring a false criminal lawsuit claiming physical abuse from him if he does not sign the divorce papers.This is an instance of ________.

Correct AnswerverifiedShow Answer

An ambiguity in a contract may constitute a mutual mistake of a material fact.

Correct AnswerverifiedShow Answer

To prove fraud,which of the following elements must be shown?

Correct AnswerverifiedShow Answer

________ is a situation in which one person takes advantage of another person's mental,emotional,or physical weakness and unduly persuades that person to enter into a contract.

Correct AnswerverifiedShow Answer

Which of the following is true of duress?

Correct AnswerverifiedShow Answer

To be actionable as fraud,the misrepresentation must have been the sole factor in inducing the innocent party to enter into the contract.

Correct AnswerverifiedShow Answer

Intentional misrepresentation is commonly referred to as ________.

Correct AnswerverifiedShow Answer

While signing a contract,one of the parties misinterpreted a legal clause.Neither of the parties is a legal professional.Which of the following statements holds well in this scenario?

Correct AnswerverifiedShow Answer

Explain undue influence with an example.

Correct AnswerverifiedUndue influence occurs when one person (...View AnswerShow Answer

Intentional misrepresentation is considered fraud.

Correct AnswerverifiedShow Answer

A misrepresentation is considered fraud even if it is made without intent to deceive another party.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Misrepresentation of law is a fraud that occurs when a person makes a statement of fact that he or she honestly and reasonably believes to be true even though it is not.

Correct AnswerverifiedShow Answer

Scienter means knowledge that a representation is false or that it was made without sufficient knowledge of the truth.

Correct AnswerverifiedShow Answer

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Undue influence occurs when one person (...
View Answer

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