Question 1

________ 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) Fraud in the inducement 
B) Fraud in the factum 
C) Fraud by concealment 
D) Fraud by suppression 
A) Fraud in the inducement 
B) Fraud in the factum 
C) Fraud by concealment 
D) Fraud by suppression B

Question 2

Which of the following constitutes duress?

Accepted Answer

A) an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation 
B) 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 
C) a threat to commit extortion unless someone enters into a contract 
D) the knowledge that a representation is false or that it was made without sufficient knowledge of the truth 
A) an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation 
B) 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 
C) a threat to commit extortion unless someone enters into a contract 
D) the knowledge that a representation is false or that it was made without sufficient knowledge of the truth C

Question 3

Duress is said to have occurred only where a threat involved a physical harm.

Accepted Answer

A) True 
 B)False  False

Question 4

The measure of damages awarded to the innocent party for fraud is the difference between the value of the property as represented and the actual value of the property.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following constitutes a mutual mistake of a material fact?

Accepted Answer

A) Martha selling her house to Graham and hiding the fact that its first floor is damaged 
B) Martha and Graham agreeing on the sale of a house, both referring to different houses 
C) Graham buying a house from Martha without asking her details of damages 
D) Martha selling Graham an old vase for $20, both of them unaware that it is a valuable antique collectible 
A) Martha selling her house to Graham and hiding the fact that its first floor is damaged 
B) Martha and Graham agreeing on the sale of a house, both referring to different houses 
C) Graham buying a house from Martha without asking her details of damages 
D) Martha selling Graham an old vase for $20, both of them unaware that it is a valuable antique collectible

Question 6

A contract in which both parties are mistaken about the value of the object of the contract is considered ________.

Accepted Answer

A) unenforceable 
B) unconscionable 
C) non-rescindable 
D) void 
A) unenforceable 
B) unconscionable 
C) non-rescindable 
D) void

Question 7

Which of the following occurs when one party intentionally hides a material fact from another party?

Accepted Answer

A) fraud in the inducement 
B) fraud in concealment 
C) silence as misrepresentation 
D) misrepresentation of law 
A) fraud in the inducement 
B) fraud in concealment 
C) silence as misrepresentation 
D) misrepresentation of law

Question 8

Which of the following scenarios makes Tim liable for undue influence?

Accepted Answer

A) Tim uses a false identity, borrows $10,000 from Kelly, and disappears with the money. 
B) Tim threatens to kill Carlos if Carlos does not sign a contract that transfers all his property to Tim. 
C) Tim takes advantage of his grandmother's illness and persuades her to sign a will leaving all her property to him. 
D) Tim threatens to bring a lawsuit against David if David does not make him a partner in his firm. 
A) Tim uses a false identity, borrows $10,000 from Kelly, and disappears with the money. 
B) Tim threatens to kill Carlos if Carlos does not sign a contract that transfers all his property to Tim. 
C) Tim takes advantage of his grandmother's illness and persuades her to sign a will leaving all her property to him. 
D) Tim threatens to bring a lawsuit against David if David does not make him a partner in his firm.

Question 9

Assent of a party to a contract may be manifested in any manner sufficient to show agreement,including conduct.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of misrepresentation of a material fact?

Accepted Answer

A) It can occur only by the words of the wrongdoer. 
B) A misrepresentation is actionable as fraud only if it is the sole factor in inducing the innocent party to enter into the contract. 
C) It is actionable as fraud if the misrepresentation is of a past or existing material fact. 
D) Predictions about the future are considered basis for fraud. 
A) It can occur only by the words of the wrongdoer. 
B) A misrepresentation is actionable as fraud only if it is the sole factor in inducing the innocent party to enter into the contract. 
C) It is actionable as fraud if the misrepresentation is of a past or existing material fact. 
D) Predictions about the future are considered basis for fraud.

Question 11

Duress is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Accepted Answer

A) True 
 B)False

Question 12

Explain fraud in the inducement with an example.

Accepted Answer

Fraud in the inducement occurs when the

Question 13

Which of the following is true of misrepresentation?

Accepted Answer

A) A misrepresentation is not actionable unless the innocent party relied on the misrepresentation and acted on it. 
B) An innocent party who acts in reliance on a misrepresentation need not justify his or her reliance. 
C) An innocent party must prove that the wrongdoer's misrepresentation was the sole reason he or she entered into the contract. 
D) An innocent party need not prove economic injury to recover damages for fraud. 
A) A misrepresentation is not actionable unless the innocent party relied on the misrepresentation and acted on it. 
B) An innocent party who acts in reliance on a misrepresentation need not justify his or her reliance. 
C) An innocent party must prove that the wrongdoer's misrepresentation was the sole reason he or she entered into the contract. 
D) An innocent party need not prove economic injury to recover damages for fraud.

Question 14

Explain the three kinds of mistakes that can be made by either party while entering a contract.When are contracts involving mistakes rescinded?

Accepted Answer

A mistake occurs where one or both of th

Question 15

Contracts involving fraud in inducement are not voidable.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of a unilateral mistake?

Accepted Answer

A) Only one mistake or ambiguity is present in the subject matter of the entire contract. 
B) Out of several contracts drafted simultaneously between two parties, one has a mistake in its subject matter that does not concern the other contracts. 
C) Only one party is mistaken about a material fact regarding the subject matter of a contract. 
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract. 
A) Only one mistake or ambiguity is present in the subject matter of the entire contract. 
B) Out of several contracts drafted simultaneously between two parties, one has a mistake in its subject matter that does not concern the other contracts. 
C) Only one party is mistaken about a material fact regarding the subject matter of a contract. 
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract.

Question 17

When a mutual mistake of value occurs,the contract remains enforceable by either party.

Accepted Answer

A) True 
 B)False

Question 18

A misrepresentation of law is actionable as fraud as the innocent party cannot know every legal detail that applies to the situation.

Accepted Answer

A) True 
 B)False

Question 19

Contracts involving fraud in the inception are void.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true of misrepresentation?

Accepted Answer

A) Innocent misrepresentation is grounds for the aggrieved party to sue for damages. 
B) Misrepresentation of law is not actionable as fraud. 
C) Innocent misrepresentation cannot be treated as a mutual mistake. 
D) Misrepresentation of law can never be grounds for rescission of the contract. 
A) Innocent misrepresentation is grounds for the aggrieved party to sue for damages. 
B) Misrepresentation of law is not actionable as fraud. 
C) Innocent misrepresentation cannot be treated as a mutual mistake. 
D) Misrepresentation of law can never be grounds for rescission of the contract.

Exam 13: Genuineness of Assent and Undue Influence

________ 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.

Which of the following constitutes duress?

Duress is said to have occurred only where a threat involved a physical harm.

The measure of damages awarded to the innocent party for fraud is the difference between the value of the property as represented and the actual value of the property.

Which of the following constitutes a mutual mistake of a material fact?

A contract in which both parties are mistaken about the value of the object of the contract is considered ________.

Which of the following occurs when one party intentionally hides a material fact from another party?

Which of the following scenarios makes Tim liable for undue influence?

Assent of a party to a contract may be manifested in any manner sufficient to show agreement,including conduct.

Which of the following is true of misrepresentation of a material fact?

Duress is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Explain fraud in the inducement with an example.

Which of the following is true of misrepresentation?

Explain the three kinds of mistakes that can be made by either party while entering a contract.When are contracts involving mistakes rescinded?

Contracts involving fraud in inducement are not voidable.

Which of the following is true of a unilateral mistake?

When a mutual mistake of value occurs,the contract remains enforceable by either party.

A misrepresentation of law is actionable as fraud as the innocent party cannot know every legal detail that applies to the situation.

Contracts involving fraud in the inception are void.

Which of the following is true of misrepresentation?

Legal Environment of Business and Online Commerce

Courts and Jurisdiction

Judicial, alternative, and Online Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crime

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, defenses, and Discharge

Banking System and Electronic Financial Transactions

Credit, mortgages, and Debtors Rights

Secured Transactions

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, agents, and Independent Contractors

Employment, worker Protection, and Immigration Law

Labor Law

Equal Opportunity in Employment

Small Business, entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, e-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property, real Property, and Insurance

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants Duties and Liability

Wills, trusts, and Estates

Family Law

International and World Trade Law

Filters