Question 1

Which of the following is true if Peter seeks to rescind the contract for the sale of the motorcycle?

Accepted Answer

A)   Peter may rescind the contract on grounds of fraud or on grounds of duress.
B)   Peter may rescind the contract on grounds of duress or on grounds of unconscionability.
C)   Peter may rescind the contract on grounds of undue influence or on grounds of duress.
D)   Peter may rescind the contract on the ground that although he is past the age of majority, he is still a student.
E)   Peter may not rescind the contract.F) D) and E)
G) A) and B)

Question 2

Why is it important to distinguish between unilateral and mutual mistakes?

Accepted Answer

A)   Because it determines which contracts are considered fraudulent.
B)   Because it determines which contracts are voidable.
C)   Because it determines which contracts lack consideration.
D)   Because it determines how much may be awarded in damages under a contract.
E)   Because it determines whether punitive damages may be awarded.F) D) and E)
G) A) and D)

Question 3

Which of the following involves a promise to buy or sell that the courts will require the parties to obey?

Accepted Answer

A)   Bilateral assent
B)   A special agreement
C)   Legal assent
D)   Contractual affirmance
E)   Legal affirmanceF) C) and E)
G) None of the above

Question 4

When duress is at issue,the _____ needed for legal consent has been removed by the specifics of the threat.

Accepted Answer

A)   Free will
B)   Knowledge
C)   Specifics
D)   Consideration
E)   RealizationF) B) and C)
G) None of the above

Question 5

Sally bought a used computer from Polly for $300.Polly told her that the price seemed fair but that she really had no idea what it was worth and just wanted to get rid of it.Sally,who knew little about computers,thought she had a great deal.After Sally returned home,she discovered from a computer expert friend of hers that the computer was not worth as much as she believed.Sally wanted to return the computer claiming that they were both mistaken about value,but Polly said,"No way!" Who should win in the dispute between Sally and Polly and why?

Accepted Answer

Polly should win because mista...

Question 6

Without legal assent a contract may be ____.

Accepted Answer

A)   Unmarketable
B)   Unchargeable
C)   Void
D)   Illegal
E)   VoidableF) B) and D)
G) A) and B)

Question 7

Which of the following is true regarding the effect of an innocent misrepresentation on a contract?

Accepted Answer

A)   It permits the party that was misled by the false statement to rescind the contract, but damages are not available.
B)   It permits the party who made the false statement to rescind the contract.
C)   It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract.
D)   The contract is automatically void and of no effect, and the party who was misled may recover damages.
E)   It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract, and it also makes the contract void and of no effect.F) All of the above
G) B) and D)

Question 8

The resulting contract from an agreement reached because one of the parties has so much more bargaining power than the other that he or she dictates the terms of the agreement is called which of the following?

Accepted Answer

A)   An outrageous contract
B)   An out-of-bounds contract
C)   An adhesion contract
D)   An untrue contract
E)   An unaffirming contractF) A) and E)
G) A) and D)

Question 9

A mistake of fact is an erroneous belief about the facts of the contract at the time the contract is concluded.

Accepted Answer

A) True 
 B)False

Question 10

Selma agreed to buy a used car from Hillary for $2,000.Hillary drew up the contract providing that the exchange would occur the next week.Unfortunately,Hillary was not very good with the keyboard and typed in $1,200 as the price of the car.Selma noticed that the contract said $1,200,not $2,000,and was very pleased.She signed it without saying anything.When it was time to make the exchange,Selma gave Hillary $1,200.In response to Hillary's inquiry regarding an additional $800,Selma pulled out the contract and showed her that it said $1,200.Hillary immediately responded that she had made a typographical error.Selma said that there was no mistake on her part because she knew exactly what she was doing and that she thought that Hillary had decided to give her a deal on the car.Which of the following is Hillary's best argument for a rescission of the contract?

Accepted Answer

A)   That a unilateral mistake was involved and that courts typically allow relief in situations involving unilateral mistakes as opposed to mutual mistakes.
B)   That the mistake resulted from a sale of goods, as opposed to the provision of services, and that courts are more likely to grant relief for a mistake when actual physical work is not involved.
C)   That because a bilateral contract, as well as a unilateral mistake was involved, most courts would grant relief.
D)   That the mistake resulted from an accidental clerical error and that it would be unconscionable to enforce the contract.
E)   That duress was involved because of Selma's wrongful behavior.F) A) and E)
G) A) and B)

Question 11

Which of the following is true regarding European courts?

Accepted Answer

A)   European courts are in total disagreement with the reluctance of American courts to interfere with a contract because the value of the item in question has changed since the agreement.
B)   European courts refuse to assume that parties accept the risk when they make a contract that the value might change later.
C)   European courts permit rescission of the contract for a mistake of value when the mistake involves more than 10 percent of the value at the time of the contract.
D)   European courts permit rescission of the contract for a mistake of value when the mistake involves more than 40 percent of the value at the time of the contract.
E)   European courts permit rescission of the contract for a mistake of value when the mistake involves more than 50 percent of the value at the time of the contract.F) None of the above
G) A) and C)

Question 12

Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff's mother on the premise that he was the father although it was later determined that the child was not his?

Accepted Answer

A)   That the agreement to pay $5 million could be rescinded based on a mutual mistake of fact.
B)   That the agreement to pay $5 million could be rescinded based on the mother's fraud.
C)   That the agreement to pay $5 million could be rescinded based on either a mutual mistake of fact or based on the mother's fraud.
D)   That the agreement to pay $5 million could not be rescinded because Jordan was aware of a question about his parentage.
E)   That the agreement to pay $5 million could not be rescinded because Jordan waited too long in which to complain about the contract.F) A) and B)
G) A) and C)

Question 13

Of which of the following is Willy guilty in threatening to tell friends about the arrest unless Weaver rents the apartment?

Accepted Answer

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

Question 14

Nondisclosure involves the active hiding of the truth about a material fact.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Accepted Answer

A)   Duress
B)   Undue influence
C)   Durable fraud
D)   Criminal influence
E)   CoercionF) D) and E)
G) A) and B)

Question 16

A[n] ______ misrepresentation results from a false statement about a fact material to an agreement that the person making the statement believed to be true.

Accepted Answer

A)   Wrongful
B)   Innocent
C)   False
D)   Misleading
E)   IllegalF) C) and D)
G) A) and D)

Question 17

A[n] ______ is a false representation of a material fact that is consciously false and intended to mislead the other party.

Accepted Answer

A)   Negligent misrepresentation
B)   Fraudulent misrepresentation
C)   Scienter misrepresentation
D)   Acknowledged misrepresentation
E)   True misrepresentationF) None of the above
G) C) and E)

Question 18

In cases where both parties to a contract are mistaken about either a current or a past material fact,either can choose to ______ the contract.

Accepted Answer

A)   Uphold
B)   Confirm
C)   Rescind
D)   Refute
E)   DisclaimF) A) and B)
G) A) and C)

Question 19

Which of the following is true regarding Willy's rights in regards to the car purchase?

Accepted Answer

A)   He will not be able to rescind the contract because Weaver made no affirmative statements.
B)   He will not be able to rescind the contract unless he can prove that he expressly asked Weaver if the mileage was run backwards on the car, and Weaver failed to reveal that the odometer had been altered.
C)   He will not be able to rescind the contract because the mileage alteration did not affect the engine of the car.
D)   He will be able to rescind the contract because of duress practiced by Weaver.
E)   He will be able to rescind the contract because of the fraudulent misrepresentation on the part of Weaver.F) A) and B)
G) B) and C)

Question 20

Which of the following is true if Tony seeks to rescind the contract for the sale of the Mustang?

Accepted Answer

A)   Tony may rescind the contract on grounds of fraud.
B)   Tony may rescind the contract on grounds of misappropriation of name or likeness.
C)   Tony may rescind the contract on grounds of duress.
D)   Tony may rescind the contract on grounds of defamation.
E)   Tony may not rescind the contract because truth is involved.F) A) and B)
G) None of the above

Exam 17: Reality of Assent

Which of the following is true regarding European courts?

Correct Answer
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Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Correct Answer
verified

Which of the following involves a promise to buy or sell that the courts will require the parties to obey?

Correct Answer
verified

Which of the following is true if Peter seeks to rescind the contract for the sale of the motorcycle?

Correct Answer
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Of which of the following is Willy guilty in threatening to tell friends about the arrest unless Weaver rents the apartment?

Correct Answer
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When duress is at issue,the _____ needed for legal consent has been removed by the specifics of the threat.

Correct Answer
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Correct Answer
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Which of the following is true regarding the effect of an innocent misrepresentation on a contract?

Correct Answer
verified

A[n] ______ misrepresentation results from a false statement about a fact material to an agreement that the person making the statement believed to be true.

Correct Answer
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Why is it important to distinguish between unilateral and mutual mistakes?

Correct Answer
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Without legal assent a contract may be ____.

Correct Answer
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Correct Answer
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Polly should win because mista...
View Answer

Nondisclosure involves the active hiding of the truth about a material fact.

Correct Answer
verified

Which of the following is true if Tony seeks to rescind the contract for the sale of the Mustang?

Correct Answer
verified

Which of the following is true regarding Willy's rights in regards to the car purchase?

Correct Answer
verified

A[n] ______ is a false representation of a material fact that is consciously false and intended to mislead the other party.

Correct Answer
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In cases where both parties to a contract are mistaken about either a current or a past material fact,either can choose to ______ the contract.

Correct Answer
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A mistake of fact is an erroneous belief about the facts of the contract at the time the contract is concluded.

Correct Answer
verified

The resulting contract from an agreement reached because one of the parties has so much more bargaining power than the other that he or she dictates the terms of the agreement is called which of the following?

Correct Answer
verified

Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff's mother on the premise that he was the father although it was later determined that the child was not his?

Correct Answer
verified

Exam 17: Reality of Assent

Which of the following is true regarding European courts?

Correct AnswerverifiedShow Answer

Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Correct AnswerverifiedShow Answer

Which of the following involves a promise to buy or sell that the courts will require the parties to obey?

Correct AnswerverifiedShow Answer

Which of the following is true if Peter seeks to rescind the contract for the sale of the motorcycle?

Correct AnswerverifiedShow Answer

Of which of the following is Willy guilty in threatening to tell friends about the arrest unless Weaver rents the apartment?

Correct AnswerverifiedShow Answer

When duress is at issue,the _____ needed for legal consent has been removed by the specifics of the threat.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of an innocent misrepresentation on a contract?

Correct AnswerverifiedShow Answer

A[n] ______ misrepresentation results from a false statement about a fact material to an agreement that the person making the statement believed to be true.

Correct AnswerverifiedShow Answer

Why is it important to distinguish between unilateral and mutual mistakes?

Correct AnswerverifiedShow Answer

Without legal assent a contract may be ____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedPolly should win because mista...View AnswerShow Answer

Nondisclosure involves the active hiding of the truth about a material fact.

Correct AnswerverifiedShow Answer

Which of the following is true if Tony seeks to rescind the contract for the sale of the Mustang?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Willy's rights in regards to the car purchase?

Correct AnswerverifiedShow Answer

A[n] ______ is a false representation of a material fact that is consciously false and intended to mislead the other party.

Correct AnswerverifiedShow Answer

In cases where both parties to a contract are mistaken about either a current or a past material fact,either can choose to ______ the contract.

Correct AnswerverifiedShow Answer

A mistake of fact is an erroneous belief about the facts of the contract at the time the contract is concluded.

Correct AnswerverifiedShow Answer

The resulting contract from an agreement reached because one of the parties has so much more bargaining power than the other that he or she dictates the terms of the agreement is called which of the following?

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff's mother on the premise that he was the father although it was later determined that the child was not his?

Correct AnswerverifiedShow 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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Polly should win because mista...
View 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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