Question 1

A misrepresentation knowingly made with an intent to deceive is known as _____.

Accepted Answer

A)  indemnification 
B)  caveat emptor 
C)  scienter 
D)  arbitration 
A)  indemnification 
B)  caveat emptor 
C)  scienter 
D)  arbitration C

Question 2

When entering into a contract,parties are required to exercise reasonable judgment.

Accepted Answer

A) True 
 B)False  True

Question 3

The practical difference between the remedies for misrepresentation and fraud is that:

Accepted Answer

A)  a victim of misrepresentation can sue for punitive damages, whereas a victim of fraud cannot. 
B)  a victim of fraud can sue for punitive damages as well as for damages from the tort of deceit. 
C)  a victim of fraud cannot sue for punitive damages. 
D)  a victim of misrepresentation cannot rescind the contract. 
A)  a victim of misrepresentation can sue for punitive damages, whereas a victim of fraud cannot. 
B)  a victim of fraud can sue for punitive damages as well as for damages from the tort of deceit. 
C)  a victim of fraud cannot sue for punitive damages. 
D)  a victim of misrepresentation cannot rescind the contract. B

Question 4

The elements of misrepresentation are ordinarily given as misrepresentation of a material fact justifiably relied on to the detriment of the person relying.

Accepted Answer

A) True 
 B)False

Question 5

The rules requiring voluntary consent are designed to protect a party to a contract from innocent errors on his or her own part and from unacceptable behavior by the other party to the agreement.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true of justifiable reliance?

Accepted Answer

A)  Misrepresentation of public facts amounts to justifiable reliance. 
B)  It cannot lead to rescission of a contract if the complaining party was aware of the truth. 
C)  There should not be any causal connection between a misrepresentation and the complaining party's entry into the contract. 
D)  It is an important element of unilateral mistakes. 
A)  Misrepresentation of public facts amounts to justifiable reliance. 
B)  It cannot lead to rescission of a contract if the complaining party was aware of the truth. 
C)  There should not be any causal connection between a misrepresentation and the complaining party's entry into the contract. 
D)  It is an important element of unilateral mistakes.

Question 7

To prove a case of duress,modern courts require only:

Accepted Answer

A)  the plaintiff to drive a hard bargain. 
B)  that the threat be a wrongful one. 
C)  a contract to be more beneficial to one of the parties. 
D)  statements that amount to puffery. 
A)  the plaintiff to drive a hard bargain. 
B)  that the threat be a wrongful one. 
C)  a contract to be more beneficial to one of the parties. 
D)  statements that amount to puffery.

Question 8

"One who waits too long to complain has indicated satisfaction with the agreement despite the initial lack of true consent" is the idea behind the doctrine of:

Accepted Answer

A)  ratification. 
B)  forbearance. 
C)  rescission. 
D)  emancipation. 
A)  ratification. 
B)  forbearance. 
C)  rescission. 
D)  emancipation.

Question 9

A(n)_____ is one where both parties involved in a contract are under a mistaken belief about a material fact.

Accepted Answer

A)  state of duress 
B)  state of undue influence 
C)  mutual mistake 
D)  unilateral mistake 
A)  state of duress 
B)  state of undue influence 
C)  mutual mistake 
D)  unilateral mistake

Question 10

The basic idea of misrepresentation is that one of the parties to a contract created in the mind of the other party a mistaken impression about an important fact or facts concerning the subject of the contract.

Accepted Answer

A) True 
 B)False

Question 11

Will wants to sell a car to Timothy.Will tries to convince Timothy that it is a good buy.Will lies by telling him that the car has 10 months of free service left in order to convince him to buy it.The car actually has only 2 months of service left.Which of the following is true in this scenario?

Accepted Answer

A)  Will is guilty of fraud. 
B)  Will is not guilty of fraud because he did not have commercial interests behind the lie. 
C)  It is a case of mutual misunderstanding. 
D)  Will cannot be tried by the court because the defendant's motivation is not known. 
A)  Will is guilty of fraud. 
B)  Will is not guilty of fraud because he did not have commercial interests behind the lie. 
C)  It is a case of mutual misunderstanding. 
D)  Will cannot be tried by the court because the defendant's motivation is not known.

Question 12

_____ involves misstatements about the content or legal effect of something usually contained in a form or preprinted contract.

Accepted Answer

A)  Fraud in the execution 
B)  Undue influence 
C)  Mutual mistake 
D)  Unintentional tort 
A)  Fraud in the execution 
B)  Undue influence 
C)  Mutual mistake 
D)  Unintentional tort

Question 13

Which of the following is true about unilateral mistakes?

Accepted Answer

A)  The court does not grant rescission even if the mistaken party is slightly negligent. 
B)  The court will grant relief even if the person's own negligence is the cause of his or her mistake. 
C)  The plaintiff needs to promptly notify the defendant when a mistake is discovered. 
D)  The basic rule is that it is grounds for rescission only if both parties to the agreement are acting under a mistaken belief. 
A)  The court does not grant rescission even if the mistaken party is slightly negligent. 
B)  The court will grant relief even if the person's own negligence is the cause of his or her mistake. 
C)  The plaintiff needs to promptly notify the defendant when a mistake is discovered. 
D)  The basic rule is that it is grounds for rescission only if both parties to the agreement are acting under a mistaken belief.

Question 14

Statements of opinion serve as a basis for rescission.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is true of misrepresentation in contracts?

Accepted Answer

A)  A mere untrue assertion is sufficient for proving misrepresentation. 
B)  Misrepresentation cannot result from an honest mistake or negligence. 
C)  Statements of opinion serve as a basis for rescission. 
D)  A victim has to show detriment from misrepresentation to cancel a contract. 
A)  A mere untrue assertion is sufficient for proving misrepresentation. 
B)  Misrepresentation cannot result from an honest mistake or negligence. 
C)  Statements of opinion serve as a basis for rescission. 
D)  A victim has to show detriment from misrepresentation to cancel a contract.

Question 16

Which of the following is true about contracts that pertain to sales of real estate?

Accepted Answer

A)  The seller gets the benefit of caveat emptor whenever a lack of information dispute arises. 
B)  The Truth in Lending Act puts the burden on the buyer to discover defects and holds that fraud by silence should be looked out for by the buyers. 
C)  Many courts today recognize that caveat emptor produces unfair results. 
D)  Courts nowadays are increasingly protecting developers, sellers, and their agents. 
A)  The seller gets the benefit of caveat emptor whenever a lack of information dispute arises. 
B)  The Truth in Lending Act puts the burden on the buyer to discover defects and holds that fraud by silence should be looked out for by the buyers. 
C)  Many courts today recognize that caveat emptor produces unfair results. 
D)  Courts nowadays are increasingly protecting developers, sellers, and their agents.

Question 17

Which of the following is the meaning of the term "caveat emptor"?

Accepted Answer

A)  Let the buyer beware 
B)  The parties' duty of care 
C)  Justifiable reliance 
D)  Remedy for fraud 
A)  Let the buyer beware 
B)  The parties' duty of care 
C)  Justifiable reliance 
D)  Remedy for fraud

Question 18

Mutual mistake is always a basis for granting rescission of the contract at the request of either party.

Accepted Answer

A) True 
 B)False

Question 19

What are the ideas behind making justifiable reliance an element of misrepresentation?

Accepted Answer

The first idea behind making justifiable

Question 20

Explain the difference between duress and undue influence.

Accepted Answer

Duress and undue influence are used to d

Exam 14: Voluntary Consent

A misrepresentation knowingly made with an intent to deceive is known as _____.

When entering into a contract,parties are required to exercise reasonable judgment.

The practical difference between the remedies for misrepresentation and fraud is that:

The elements of misrepresentation are ordinarily given as misrepresentation of a material fact justifiably relied on to the detriment of the person relying.

The rules requiring voluntary consent are designed to protect a party to a contract from innocent errors on his or her own part and from unacceptable behavior by the other party to the agreement.

Which of the following statements is true of justifiable reliance?

To prove a case of duress,modern courts require only:

"One who waits too long to complain has indicated satisfaction with the agreement despite the initial lack of true consent" is the idea behind the doctrine of:

A(n)_____ is one where both parties involved in a contract are under a mistaken belief about a material fact.

The basic idea of misrepresentation is that one of the parties to a contract created in the mind of the other party a mistaken impression about an important fact or facts concerning the subject of the contract.

Will wants to sell a car to Timothy.Will tries to convince Timothy that it is a good buy.Will lies by telling him that the car has 10 months of free service left in order to convince him to buy it.The car actually has only 2 months of service left.Which of the following is true in this scenario?

_____ involves misstatements about the content or legal effect of something usually contained in a form or preprinted contract.

Which of the following is true about unilateral mistakes?

Statements of opinion serve as a basis for rescission.

Which of the following is true of misrepresentation in contracts?

Which of the following is true about contracts that pertain to sales of real estate?

Which of the following is the meaning of the term "caveat emptor"?

Mutual mistake is always a basis for granting rescission of the contract at the request of either party.

What are the ideas behind making justifiable reliance an element of misrepresentation?

Explain the difference between duress and undue influence.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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