Question 1

Which of the following statements is true for duress?

Accepted Answer

A)  The reason behind the idea of duress is that mistakes may prevent the "meeting of the minds" required by contract law. 
B)  The basic idea behind duress is to protect the old, the timid, and the physically or mentally weak from those who gain their confidence and attempt to take advantage of them. 
C)  The term duress is used in contract law to describe the situation in which one or both of the parties to an agreement acted under an untrue belief about the existence or nonexistence of a material fact. 
D)  The courts have generally held that the threat of a well-founded civil suit is not duress. 
A)  The reason behind the idea of duress is that mistakes may prevent the "meeting of the minds" required by contract law. 
B)  The basic idea behind duress is to protect the old, the timid, and the physically or mentally weak from those who gain their confidence and attempt to take advantage of them. 
C)  The term duress is used in contract law to describe the situation in which one or both of the parties to an agreement acted under an untrue belief about the existence or nonexistence of a material fact. 
D)  The courts have generally held that the threat of a well-founded civil suit is not duress.

Question 2

Even if the facts and circumstances surrounding a case indicate that the parties reached an agreement,that agreement must be involuntary to be enforceable.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is considered an actionable misrepresentation?

Accepted Answer

A)  A statement about the future 
B)  A statement that amounts to puffing 
C)  A statement concerning a present fact 
D)  A statement of opinion 
A)  A statement about the future 
B)  A statement that amounts to puffing 
C)  A statement concerning a present fact 
D)  A statement of opinion

Question 4

The courts do not allow a person who claims to have been victimized by a misrepresentation to cancel the contract unless he or she can show some detriment as a result of the misrepresentation.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is best associated with "caveat emptor"?

Accepted Answer

A)  Scienter 
B)  Fraud by silence 
C)  Fraud in the execution 
D)  Undue influence 
A)  Scienter 
B)  Fraud by silence 
C)  Fraud in the execution 
D)  Undue influence

Question 6

Harry owns a Cadillac and a Porsche.Ryan has always wanted a Porsche and knows Harry owns one.Harry decides to sell his Cadillac and buy a BMW.A mutual friend of Ryan and Harry tells Ryan,"Harry's selling his car." Thinking Harry is selling the Porsche (he does not know he also has a Cadillac),Ryan calls Harry and says,"I'll give you $9,500 for your car." Harry,thinking Ryan is talking about the Cadillac,says,"You've got a deal." On what grounds is the above agreement open for rescission?

Accepted Answer

A)  Mutual mistake 
B)  Fraud 
C)  Misrepresentation 
D)  Unilateral mistake 
A)  Mutual mistake 
B)  Fraud 
C)  Misrepresentation 
D)  Unilateral mistake

Question 7

A key point of differentiation between duress and undue influence lies in the:

Accepted Answer

A)  net worth of the contract in question. 
B)  time at which the contract was signed. 
C)  relationship between the parties at the time of the contract. 
D)  type of property in question. 
A)  net worth of the contract in question. 
B)  time at which the contract was signed. 
C)  relationship between the parties at the time of the contract. 
D)  type of property in question.

Question 8

All the elements of misrepresentation and the fact that the misrepresentation was knowingly made with an intent to deceive,have to be established to prove _____.

Accepted Answer

A)  undue influence 
B)  duress 
C)  fraud 
D)  a unilateral mistake 
A)  undue influence 
B)  duress 
C)  fraud 
D)  a unilateral mistake

Question 9

Phil buys a laptop from Mark for $1,000.Mark knew that the laptop had hardware problems.However,he told Phil that it was in excellent condition.In this scenario,which of the following is most likely to be true?

Accepted Answer

A)  Mark does not owe Phil anything because it was Phil's duty to check if Mark was lying. 
B)  Mark can dismiss any fraud accusations because it was a case of mutual misunderstanding. 
C)  Phil can sue for the difference between purchase price and true value of the laptop with hardware problems. 
D)  Phil can recover 20% of the repair costs on the condition that he returns the laptop to Mike. 
A)  Mark does not owe Phil anything because it was Phil's duty to check if Mark was lying. 
B)  Mark can dismiss any fraud accusations because it was a case of mutual misunderstanding. 
C)  Phil can sue for the difference between purchase price and true value of the laptop with hardware problems. 
D)  Phil can recover 20% of the repair costs on the condition that he returns the laptop to Mike.

Question 10

In case of duress,there is no voluntary consent if:

Accepted Answer

A)  either party rescinds any time. 
B)  there is a confidential relationship between the parties. 
C)  the plaintiff's free will was overcome. 
D)  a material fact has been intentionally misrepresented. 
A)  either party rescinds any time. 
B)  there is a confidential relationship between the parties. 
C)  the plaintiff's free will was overcome. 
D)  a material fact has been intentionally misrepresented.

Exam 14: Voluntary Consent

Which of the following statements is true for duress?

Even if the facts and circumstances surrounding a case indicate that the parties reached an agreement,that agreement must be involuntary to be enforceable.

Which of the following statements is considered an actionable misrepresentation?

The courts do not allow a person who claims to have been victimized by a misrepresentation to cancel the contract unless he or she can show some detriment as a result of the misrepresentation.

Which of the following is best associated with "caveat emptor"?

A key point of differentiation between duress and undue influence lies in the:

All the elements of misrepresentation and the fact that the misrepresentation was knowingly made with an intent to deceive,have to be established to prove _____.

Phil buys a laptop from Mark for $1,000.Mark knew that the laptop had hardware problems.However,he told Phil that it was in excellent condition.In this scenario,which of the following is most likely to be true?

In case of duress,there is no voluntary consent if:

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

Filters