Question 1

Which of the following is not required to prove innocent representation?

Accepted Answer

A) The fact asserted was material. 
B) The complaining party entered the contract because of his reliance on the fact asserted. 
C) The complaining party's reliance was reasonable. 
D) The fact asserted constituted a mistake of law. 
A) The fact asserted was material. 
B) The complaining party entered the contract because of his reliance on the fact asserted. 
C) The complaining party's reliance was reasonable. 
D) The fact asserted constituted a mistake of law.

Question 2

In the case in the text,Olmstead v.Saint Paul Public Schools,the court held that:

Accepted Answer

A) Olmstead could not demonstrate that his free will was overcome. 
B) Olmstead's resignation was revocable because when he resigned he was under duress. 
C) Olmstead was under duress when the District threated to file termination charges against Olmstead when it had no intention or grounds to do so. 
D) the District illegally promised to not report Olmstead if he resigned. 
A) Olmstead could not demonstrate that his free will was overcome. 
B) Olmstead's resignation was revocable because when he resigned he was under duress. 
C) Olmstead was under duress when the District threated to file termination charges against Olmstead when it had no intention or grounds to do so. 
D) the District illegally promised to not report Olmstead if he resigned.

Question 3

Which of the following statements,if false,is most likely to create liability for fraud or misrepresentation?

Accepted Answer

A) "This rare antique chair is probably worth $10,000." 
B) "This crane will lift a 10,000-pound load." 
C) "This car is a perfect gem." 
D) "In my opinion,this car is in flawless mechanical condition." 
A) "This rare antique chair is probably worth $10,000." 
B) "This crane will lift a 10,000-pound load." 
C) "This car is a perfect gem." 
D) "In my opinion,this car is in flawless mechanical condition."

Question 4

Mutual mistake is more likely to make a contract voidable than a unilateral mistake.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is most likely to constitute undue influence?

Accepted Answer

A) A firm demanding more in terms of pricing by withholding essential supplies. 
B) A clergyman using a parishioner's emotional susceptibility to get the parishioner to contract with the clergyman. 
C) Threatening to commence a frivolous criminal prosecution against someone,in order to get him or her to contract with you. 
D) Grabbing someone's hand and forcing him or her to sign on a contract you have prepared. 
A) A firm demanding more in terms of pricing by withholding essential supplies. 
B) A clergyman using a parishioner's emotional susceptibility to get the parishioner to contract with the clergyman. 
C) Threatening to commence a frivolous criminal prosecution against someone,in order to get him or her to contract with you. 
D) Grabbing someone's hand and forcing him or her to sign on a contract you have prepared.

Question 6

Which of the following is the adoption or affirmance by a person of a prior act that did not bind him or her?

Accepted Answer

A) Acquiescence 
B) Ratification 
C) Concealment 
D) Assertion 
A) Acquiescence 
B) Ratification 
C) Concealment 
D) Assertion

Question 7

As discussed in the case in the text,Hicks v.Sparks,a person who is harmed by a mutual mistake cannot avoid that contract if he is considered to bear the risk of mistake.Which of the following statements is true?

Accepted Answer

A) A buyer is not considered to have accepted the risk when he accepts property "as is." 
B) Courts have the power to allocate risk of a mistake on the adversely affected person whenever it is reasonable under the circumstances to do so. 
C) The adversely affected party does not bear the risk of mistake when he contracts with conscious awareness that he has limited information about a fact. 
D) A person who is harmed by the mistake can avoid the contract on the basis of mutual mistake even if he is considered to bear the risk of mistake. 
A) A buyer is not considered to have accepted the risk when he accepts property "as is." 
B) Courts have the power to allocate risk of a mistake on the adversely affected person whenever it is reasonable under the circumstances to do so. 
C) The adversely affected party does not bear the risk of mistake when he contracts with conscious awareness that he has limited information about a fact. 
D) A person who is harmed by the mistake can avoid the contract on the basis of mutual mistake even if he is considered to bear the risk of mistake.

Question 8

A person who commits fraud may be liable for punitive damages for the tort of:

Accepted Answer

A) deceit. 
B) fraud. 
C) misrepresentation. 
D) assertion. 
A) deceit. 
B) fraud. 
C) misrepresentation. 
D) assertion.

Question 9

An important difference between duress and undue influence is that:

Accepted Answer

A) duress occurs in a relationship of trust,while undue influence employs improper threat. 
B) duress involves physical compulsion,while undue influence involves economic compulsion. 
C) the scope of duress has contracted since the 19th century,while the scope of undue influence has expanded since the 19th century. 
D) duress is wrongful coercion,while undue influence is unfair persuasion. 
A) duress occurs in a relationship of trust,while undue influence employs improper threat. 
B) duress involves physical compulsion,while undue influence involves economic compulsion. 
C) the scope of duress has contracted since the 19th century,while the scope of undue influence has expanded since the 19th century. 
D) duress is wrongful coercion,while undue influence is unfair persuasion.

Question 10

Identify the difference between a case involving intentional fraud and innocent misrepresentation.

Accepted Answer

A) The contractual remedy of rescission is not available in a misrepresentation case. 
B) A person committing innocent misrepresentation is liable for punitive damages for the tort of deceit. 
C) Reasonable reliance of the complaining party is not required in a fraud case. 
D) Materiality is not required in a fraud case. 
A) The contractual remedy of rescission is not available in a misrepresentation case. 
B) A person committing innocent misrepresentation is liable for punitive damages for the tort of deceit. 
C) Reasonable reliance of the complaining party is not required in a fraud case. 
D) Materiality is not required in a fraud case.

Exam 13: Reality of Consent

Which of the following is not required to prove innocent representation?

In the case in the text,Olmstead v.Saint Paul Public Schools,the court held that:

Which of the following statements,if false,is most likely to create liability for fraud or misrepresentation?

Mutual mistake is more likely to make a contract voidable than a unilateral mistake.

Which of the following is most likely to constitute undue influence?

Which of the following is the adoption or affirmance by a person of a prior act that did not bind him or her?

As discussed in the case in the text,Hicks v.Sparks,a person who is harmed by a mutual mistake cannot avoid that contract if he is considered to bear the risk of mistake.Which of the following statements is true?

A person who commits fraud may be liable for punitive damages for the tort of:

An important difference between duress and undue influence is that:

Identify the difference between a case involving intentional fraud and innocent misrepresentation.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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