Question 1

In general, a person should not rely on a non-lawyer's statement about a point of law.

Accepted Answer

A) True 
 B)False

Question 2

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

Accepted Answer

A)  duress. 
B)  fraudulent misrepresentation. 
C)  mistake. 
D)  undue influence. 
A)  duress. 
B)  fraudulent misrepresentation. 
C)  mistake. 
D)  undue influence.

Question 3

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on-a local law prohibits construction on the rest of the property. Ralph can

Accepted Answer

A)  not avoid the contract because persons are assumed to know the law. 
B)  avoid the contract due to a bilateral mistake. 
C)  avoid the contract due to undue influence. 
D)  avoid the contract due to fraud. 
A)  not avoid the contract because persons are assumed to know the law. 
B)  avoid the contract due to a bilateral mistake. 
C)  avoid the contract due to undue influence. 
D)  avoid the contract due to fraud.

Question 4

The identity of the parties to a contract is an example of a material fact.

Accepted Answer

A) True 
 B)False

Question 5

The party on whom duress is exerted can choose to avoid the entire transaction.

Accepted Answer

A) True 
 B)False

Question 6

Intent to deceive is an element of fraud.

Accepted Answer

A) True 
 B)False

Question 7

Health Source, Inc., offers to buy Medico Equipment & Supplies Corporation. On June 1, Medico gives Health Source copies of Medico's financial statements for the pre-vious year. The statements show an inventory of $10 million. On June 15, Medico discovers that the previous year's inventory is overstated by $500,000, but does not inform Health Source. On July 1, Health Source, relying on the financial statements, buys Medico. On July 10, Health Source discovers the inventory overstatement. Can Health Source succeed in a suit against Medico? On what basis?

Accepted Answer

Yes, Health Source can succeed in a suit

Question 8

Even if the defects on a piece of property are obvious, the buyer can justifiably rely on the seller's misrepresentations concerning those defects.

Accepted Answer

A) True 
 B)False

Question 9

If a seller knows of a serious potential problem that the buyer cannot reasonably be expected to discover, the seller may have a duty to speak.

Accepted Answer

A) True 
 B)False

Question 10

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $195 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is

Accepted Answer

A)  entitled to recover the value of the lost cattle. 
B)  not required to pay due to the bilateral mistake. 
C)  not required to pay due to the unilateral mistake. 
D)  required to pay because he assumed the risk the cattle might die. 
A)  entitled to recover the value of the lost cattle. 
B)  not required to pay due to the bilateral mistake. 
C)  not required to pay due to the unilateral mistake. 
D)  required to pay because he assumed the risk the cattle might die.

Question 11

In selling a 300-acre farm to Organic Farms, Peyton tells the buyer that the land "will be worth a whole lot more in the future." This is

Accepted Answer

A)  duress. 
B)  fraudulent misrepresentation. 
C)  mistake. 
D)  opinion. 
A)  duress. 
B)  fraudulent misrepresentation. 
C)  mistake. 
D)  opinion.

Question 12

Fact Pattern 13 - 3 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Dale to Ezra, the furnished information is mistaken.
Refer to Fact Pattern 13-3. The contract between Dale and Ezra that includes the mistake may be rescinded if the mistake involves

Accepted Answer

A)  a material fact. 
B)  any fact. 
C)  value. 
D)  quality. 
A)  a material fact. 
B)  any fact. 
C)  value. 
D)  quality.

Question 13

When a seller uses "seller's talk" to tout their products and services, a seller risks being liable for fraud.

Accepted Answer

A) True 
 B)False

Question 14

Fact Pattern 13 - 3 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Dale to Ezra, the furnished information is mistaken.
Refer to Fact Pattern 13 - 3. If Dale and Ezra are both ignorant of the mistake, it is

Accepted Answer

A)  a bilateral mistake. 
B)  a fraudulent misrepresentation. 
C)  a unilateral mistake. 
D)  undue influence. 
A)  a bilateral mistake. 
B)  a fraudulent misrepresentation. 
C)  a unilateral mistake. 
D)  undue influence.

Question 15

Fact Pattern 13 - 3 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Dale to Ezra, the furnished information is mistaken.
Refer to Fact Pattern 13 - 3. The contract between Dale and Ezra that includes the mistake may be rescinded if the mistake concerns

Accepted Answer

A)  a fact that is important and central to the contract. 
B)  a term in the contract subject to only one reasonable interpretation. 
C)  a detail on which the parties had a true "meeting of the minds." 
D)  a third party, such as County Title. 
A)  a fact that is important and central to the contract. 
B)  a term in the contract subject to only one reasonable interpretation. 
C)  a detail on which the parties had a true "meeting of the minds." 
D)  a third party, such as County Title.

Question 16

Bram, a salesperson for Cruisin' Motors, promises Deb a certain car will give her a "smooth ride." Bram offers a test drive, which Deb declines. She buys the car but soon realizes its suspension is in poor condition. Deb can rescind the contract on the ground of

Accepted Answer

A)  fraudulent misrepresentation. 
B)  undue influence. 
C)  mistake. 
D)  none of the choices. 
A)  fraudulent misrepresentation. 
B)  undue influence. 
C)  mistake. 
D)  none of the choices.

Question 17

Fact Pattern 13-1 Data Storage Inc. offers to provide cloud-computing services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer.
Refer to Fact Pattern 13-1. Data Storage's best defense against enforcement of the contract is that Enterprise knew

Accepted Answer

A)  a bilateral mistake supports the cancellation of a contract. 
B)  a mistake of value supports the cancellation of a contract. 
C)  a unilateral mistake supports the cancellation of a contract. 
D)  the price was below the prices of comparable services. 
A)  a bilateral mistake supports the cancellation of a contract. 
B)  a mistake of value supports the cancellation of a contract. 
C)  a unilateral mistake supports the cancellation of a contract. 
D)  the price was below the prices of comparable services.

Question 18

Forcing a party to enter into a contract under the fear of threats is legally defined as undue influence .

Accepted Answer

A) True 
 B)False

Question 19

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of

Accepted Answer

A)  fraudulent misrepresentation. 
B)  undue influence. 
C)  mistake. 
D)  duress. 
A)  fraudulent misrepresentation. 
B)  undue influence. 
C)  mistake. 
D)  duress.

Question 20

Don threatens physical harm to force Ed to sell his Flower Shop to Don for a below-market price. This is

Accepted Answer

A)  duress. 
B)  fraudulent misrepresentation. 
C)  mistake. 
D)  undue influence. 
A)  duress. 
B)  fraudulent misrepresentation. 
C)  mistake. 
D)  undue influence.

Exam 13: Voluntary Consent

In general, a person should not rely on a non-lawyer's statement about a point of law.

Ruth, who is Sal's guardian, convinces him to buy a certain parcel of land from Tyrone at a greatly inflated price. Ruth may be liable for

Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on-a local law prohibits construction on the rest of the property. Ralph can

The identity of the parties to a contract is an example of a material fact.

The party on whom duress is exerted can choose to avoid the entire transaction.

Intent to deceive is an element of fraud.

Even if the defects on a piece of property are obvious, the buyer can justifiably rely on the seller's misrepresentations concerning those defects.

If a seller knows of a serious potential problem that the buyer cannot reasonably be expected to discover, the seller may have a duty to speak.

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $195 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is

In selling a 300-acre farm to Organic Farms, Peyton tells the buyer that the land "will be worth a whole lot more in the future." This is

When a seller uses "seller's talk" to tout their products and services, a seller risks being liable for fraud.

Bram, a salesperson for Cruisin' Motors, promises Deb a certain car will give her a "smooth ride." Bram offers a test drive, which Deb declines. She buys the car but soon realizes its suspension is in poor condition. Deb can rescind the contract on the ground of

Forcing a party to enter into a contract under the fear of threats is legally defined as undue influence .

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of

Don threatens physical harm to force Ed to sell his Flower Shop to Don for a below-market price. This is

Introduction to the Law

Ethics in Business

The Courts and Our Legal System

Constitutional Law

Business Torts

Intellectual Property

Business Crimes

Introduction to Contracts

Offer and Acceptance

Consideration

Capacity

The Legality of Agreements

Written Contracts

Third Party Rights

Termination and Remedies

Introduction to Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach

Warranties and Product Liability

Consumer Protection

The Essentials of Negotiability

Negotiable Instruments: Transfer and Liability

Banking in the Digital Age

Agency Relationships

Employment, Immigration, and Labor Law

Employment Discrimination

Types of Business Organizations

Formation and Ownership of a Corporation

Management of a Corporation

Combining and Dissolving a Corporation

Credit and Security

Mortgages

Bankruptcy

Insurance

Personal Property

Bailments

Real Property

Landlord and Tenant Law

Wills and Trusts

Administrative Law

Antitrust Law

International and Space Law

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