Question 1

A voidable contract may be ________.

Accepted Answer

A)  Chargeable
B)  Deassented
C)  Rescinded
D)  Reassented
E)  UnchargedF) B) and C)
G) A) and C)

Question 2

Set forth the factors referenced in the text that enter into a finding of whether undue influence exists.

Accepted Answer

1)Was the dominant party rushing the oth...

Question 3

In determining whether a mistake of fact occurred,what of the following is true?

Accepted Answer

A)  Courts look to determine whether a mistake of fact occurred when an advertisement was made.
B)  Courts look to determine whether a mistake of fact occurred at the time the contract was concluded.
C)  Courts look to determine whether a mistake of fact occurred after the contract was concluded.
D)  Courts look to determine whether a mistake of fact occurred during contract negotiations.
E)  Courts look to determine whether a mistake of fact occurred when the initial offer was made.F) A) and C)
G) B) and E)

Question 4

The reasoning in innocent misrepresentation cases resembles the reasoning in a[n] case.

Accepted Answer

A)  Mutual mistake
B)  Duress
C)  Negligent misrepresentation
D)  Fraudulent misrepresentation
E)  Unilateral mistakeF) A) and C)
G) A) and D)

Question 5

The statement of fact need not be an actual assertion for fraudulent misrepresentation to be the basis for a contract rescission.

Accepted Answer

A) True 
 B)False

Question 6

A mistake that is shared by both parties to an agreement is a[n] ________ mistake.

Accepted Answer

A)  Unclear
B)  Double
C)  Clear
D)  Unilatera l
E)  MutualF) D) and E)
G) B) and D)

Question 7

Which of the following statements is least likely to support the suggestion of Elton's technician about shaving down the switchplates and using them,instead of rescinding the contract?

Accepted Answer

A)  If the contract is rescinded,Elton's Electronics would not have any switchplates for the blenders.
B)  If the contract is rescinded,Porter will probably not want to do business with Elton again.
C)  A rescinded contract is time-consuming.
D)  If the contract is rescinded,we would "win" against Porter.
E)  A rescinded contract is expensive.F) C) and D)
G) A) and B)

Question 8

An erroneous belief about the facts of the contract at the time the contract is concluded is called a mistake of fact.

Accepted Answer

A) True 
 B)False

Question 9

What effect might the disclaimer have on Ky's claim?

Accepted Answer

A)  The disclaimer would have no effect since disclaimers in contracts are against public policy.
B)  The disclaimer would likely prevent Ky's claim but only if the disclaimer was mutual.
C)  The disclaimer would prevent Ky's claim because Ky affirmed that he had reviewed the spreadsheet.
D)  The disclaimer would likely not prevent Ky's claim because the spreadsheet was based on erroneous information and Ky did not affirm that the information in the spreadsheet was correct.
E)  The disclaimer would prevent Ky's claim because he signed it.F) B) and E)
G) B) and D)

Question 10

Which of the following is an example of non-disclosure?

Accepted Answer

A)  Justin removes 25,000 miles from his odometer.
B)  Justin changes quality control paperwork to show a shipment has passed inspection.
C)  Justin places a carpet over mold in his basement.
D)  Justin permits a shipment of hair dryers which did not pass quality control testing.
E)  Justin checks the "no" box on a form asking if the house being sold had ever flooded.F) C) and D)
G) D) and E)

Question 11

Is Elton likely to be successful in a lawsuit that seeks to void or rescind the contract?

Accepted Answer

A)  Yes,because a unilateral mistake voids a contract.
B)  No,because courts rarely allow rescission in cases of a mutual mistake.
C)  Yes,because both parties were mistaken about what constitutes a "standard-size" switchplate,and where there was a mutual mistake,either party may choose to rescind the contract.
D)  Yes,because it was a mistake of fact.
E)  No,because only Elton,not Porter,was mistaken about what constitutes a "standard-size" switchplate,and a unilateral mistake generally does not void a contract.F) C) and D)
G) A) and D)

Question 12

Which of the following examples would a court be least likely to find that nondisclosure has the same legal effect as an actual false assertion?

Accepted Answer

A)  The contract involves a sale of a car with bad brakes.
B)  Vito permits an order to ship that did not pass quality testing.
C)  Caroline fails to inform Vito of the recent outbreak of rust on her "rust-free" car that Vito had already agreed to purchase.
D)  Despite the state's mandatory disclosure law,Vito fails to mention the mold in his basement.
E)  One of the parties to the contract is the other's doctor.F) C) and D)
G) C) and E)

Question 13

[Scheming 'Friends'] Richard wants to rent a basement apartment in Eric's home.Richard threatens to tell Eric's parents that Eric had been arrested for illegally smoking marijuana unless Eric rents the apartment to him for $100 per month.The information regarding the arrest is true. ) Eric reluctantly agrees to rent the apartment to Richard for $100 per month.Richard also wants to buy Eric's car.Eric runs back the odometer on the car before Richard looks at it.Richard is impressed by the low mileage and agrees to buy the car.Eric offers to sell Richard a ring for Richard's fiancée.Eric tells Richard that the ring is a diamond and believes that to be true.After the deal is made,however,a jeweler friend of Eric informs him that the ring is a fake.When Richard shows up with the money,Eric says nothing.He just hands Richard the ring and takes the money.Later,Richard finds out that the odometer was run backwards from another friend in whom Eric confided.Richard also finds out from his girlfriend that the ring is a fake.
-Which of the following is Richard guilty of in threatening to tell Eric's parents about the arrest unless Eric rents the apartment?

Accepted Answer

A)  Undue influence
B)  Fraud
C)  Duress
D)  Consumer misbehavior
E)  UnconscionabilityF) B) and D)
G) All of the above

Question 14

Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?

Accepted Answer

A)  Contractual duress
B)  Specific duress
C)  Negligent duress
D)  Fraudulent duress
E)  Economic duressF) All of the above
G) A) and B)

Question 15

Marissa was interested in buying a used personal watercraft from Victor.He told her that the engine on the watercraft was in good shape.Marissa agreed to pay Victor $4,000 for the watercraft.Marissa was going out of town on vacation,so they agreed that when she returned in a week,she would pay Victor and pick up the watercraft.During that week,the manufacturer notified Victor that the watercraft was being recalled because it had a faulty engine.Victor said nothing about the condition of the engine or the recall when Marissa came to pick up the watercraft.They chatted about other matters;she gave him the $4,000,and took the watercraft.Later,Marissa started having problems with the watercraft and found out that Victor and other initial purchasers had been notified of the issue with the engine.She asked for a refund,accusing Victor of fraud.Victor refused on the basis that he did not make any misrepresentation.Who is correct and why? For purposes of this question,assume that sales talk or puffery is not at issue.

Accepted Answer

Marissa is correct.Courts will find nond...

Question 16

What was the result in the Peerless case discussed in the text in which there were two ships named Peerless and the parties disagreed over which ship was the subject of the contract?

Accepted Answer

A)  The court ruled that the defendant would be allowed to choose which ship would be identified to the contract.
B)  The court ruled that the plaintiff would be allowed to choose which ship would be identified to the contract.
C)  The court rescinded the contract.
D)  The court ruled that the older ship would be identified to the contract.
E)  The court ruled that the newer ship would be identified to the contract.F) C) and E)
G) A) and B)

Question 17

Without legal assent a contract may be ________.

Accepted Answer

A)  Void
B)  Voidable
C)  Illegal
D)  Unmarketable
E)  UnchargeableF) A) and E)
G) C) and E)

Question 18

What is the purpose of the concept of legal assent?

Accepted Answer

To make business transactions smoother a...

Question 19

It is not necessary to show reliance to prove fraudulent misrepresentation.

Accepted Answer

A) True 
 B)False

Question 20

Under which of the following scenarios would a court most likely invalidate the contract with Porter?

Accepted Answer

A)  If Porter knew the "standard-size" switchplates were not the proper size for Elton's blenders,and Elton's mistake in calculating the size needed was a clerical error.
B)  If Elton assumed the switchplate was the standard size.
C)  If Elton's mistake in measuring the size of the switchplate needed was a clerical error.
D)  If Elton's technician "eyeballed" the size needed for the blender.
E)  If Elton wrote the wrong switchplate size in an email to Porter and that size was the same as the standard size.F) B) and E)
G) A) and D)

Exam 17: Legal Assent

An erroneous belief about the facts of the contract at the time the contract is concluded is called a mistake of fact.

Correct Answer
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In determining whether a mistake of fact occurred,what of the following is true?

Correct Answer
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Which of the following statements is least likely to support the suggestion of Elton's technician about shaving down the switchplates and using them,instead of rescinding the contract?

Correct Answer
verified

Without legal assent a contract may be ________.

Correct Answer
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What effect might the disclaimer have on Ky's claim?

Correct Answer
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A voidable contract may be ________.

Correct Answer
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What is the purpose of the concept of legal assent?

Correct Answer
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To make business transactions smoother a...
View Answer

A mistake that is shared by both parties to an agreement is a[n] ________ mistake.

Correct Answer
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Correct Answer
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Marissa is correct.Courts will find nond...
View Answer

Which of the following examples would a court be least likely to find that nondisclosure has the same legal effect as an actual false assertion?

Correct Answer
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The reasoning in innocent misrepresentation cases resembles the reasoning in a[n] case.

Correct Answer
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Under which of the following scenarios would a court most likely invalidate the contract with Porter?

Correct Answer
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Correct Answer
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Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?

Correct Answer
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Is Elton likely to be successful in a lawsuit that seeks to void or rescind the contract?

Correct Answer
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Which of the following is an example of non-disclosure?

Correct Answer
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The statement of fact need not be an actual assertion for fraudulent misrepresentation to be the basis for a contract rescission.

Correct Answer
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It is not necessary to show reliance to prove fraudulent misrepresentation.

Correct Answer
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What was the result in the Peerless case discussed in the text in which there were two ships named Peerless and the parties disagreed over which ship was the subject of the contract?

Correct Answer
verified

Set forth the factors referenced in the text that enter into a finding of whether undue influence exists.

Correct Answer
verified
1)Was the dominant party rushing the oth...
View Answer

Exam 17: Legal Assent

An erroneous belief about the facts of the contract at the time the contract is concluded is called a mistake of fact.

Correct AnswerverifiedShow Answer

In determining whether a mistake of fact occurred,what of the following is true?

Correct AnswerverifiedShow Answer

Which of the following statements is least likely to support the suggestion of Elton's technician about shaving down the switchplates and using them,instead of rescinding the contract?

Correct AnswerverifiedShow Answer

Without legal assent a contract may be ________.

Correct AnswerverifiedShow Answer

What effect might the disclaimer have on Ky's claim?

Correct AnswerverifiedShow Answer

A voidable contract may be ________.

Correct AnswerverifiedShow Answer

What is the purpose of the concept of legal assent?

Correct AnswerverifiedTo make business transactions smoother a...View AnswerShow Answer

A mistake that is shared by both parties to an agreement is a[n] ________ mistake.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedMarissa is correct.Courts will find nond...View AnswerShow Answer

Which of the following examples would a court be least likely to find that nondisclosure has the same legal effect as an actual false assertion?

Correct AnswerverifiedShow Answer

The reasoning in innocent misrepresentation cases resembles the reasoning in a[n] case.

Correct AnswerverifiedShow Answer

Under which of the following scenarios would a court most likely invalidate the contract with Porter?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?

Correct AnswerverifiedShow Answer

Is Elton likely to be successful in a lawsuit that seeks to void or rescind the contract?

Correct AnswerverifiedShow Answer

Which of the following is an example of non-disclosure?

Correct AnswerverifiedShow Answer

The statement of fact need not be an actual assertion for fraudulent misrepresentation to be the basis for a contract rescission.

Correct AnswerverifiedShow Answer

It is not necessary to show reliance to prove fraudulent misrepresentation.

Correct AnswerverifiedShow Answer

What was the result in the Peerless case discussed in the text in which there were two ships named Peerless and the parties disagreed over which ship was the subject of the contract?

Correct AnswerverifiedShow Answer

Set forth the factors referenced in the text that enter into a finding of whether undue influence exists.

Correct Answerverified1)Was the dominant party rushing the oth...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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To make business transactions smoother a...
View Answer

Correct Answer
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Correct Answer
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Marissa is correct.Courts will find nond...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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1)Was the dominant party rushing the oth...
View Answer