Question 1

"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 2

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

Question 3

Contracts entered into as a result of misrepresentation, fraud, and certain kinds of mistake are void.

Accepted Answer

A) True 
 B)False

Question 4

Duress exists only when the parties had some confidential relationship at the time of the contract.

Accepted Answer

A) True 
 B)False

Question 5

Even a mere untrue assertion is sufficient to prove misrepresentation.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A _____ 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 8

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 9

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 10

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.

Exam 14: Voluntary Consent

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

Contracts entered into as a result of misrepresentation, fraud, and certain kinds of mistake are void.

Duress exists only when the parties had some confidential relationship at the time of the contract.

Even a mere untrue assertion is sufficient to prove misrepresentation.

Which of the following is true of misrepresentation in contracts?

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

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

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.

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

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