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Which of the following was the result on appeal in the case of Evan Rothberg v.Walt Disney Pictures,the case in the text in which the defendant allegedly used undue influence to obtain a release of employee benefits from a person in the hospital dying of AIDS?


A) The court ruled that the defendant was rightfully entitled to a summary judgment ruling in its favor because there was no direct evidence of legal undue susceptibility on the part of the weaker party.
B) The court ruled that the defendant was rightfully entitled to a summary judgment ruling in its favor because there was no direct evidence of application of excessive pressure by the stronger party.
C) The court ruled that the defendant was subject to summary judgment because the employer/employee relationship was present when the benefits at issue were granted, and no action for undue influence could later be brought against the employer.
D) The court ruled that the plaintiff was entitled to recover as a matter of law because there was sufficient proof of undue influence.
E) The court ruled that a jury question was presented as to whether undue influence was present.

F) B) and E)
G) None of the above

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When a person who makes a misrepresentation has no knowledge about the falsity of the claim,it is said that the person lacked ____.


A) Information
B) Premeditation
C) Planning
D) Plotting
E) Scienter

F) A) and C)
G) A) and D)

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For fraudulent misrepresentation to be the basis for a contract rescission,the statement of fact need not be an actual assertion.

A) True
B) False

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True

A[n] ______ mistake is the result of an error by one party about a material fact.


A) Unclear
B) Mutual
C) Unilateral
D) Clear
E) Single

F) B) and D)
G) C) and D)

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C

Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?


A) Fraudulent duress
B) Contractual duress
C) Negligent duress
D) Economic duress
E) Specific duress

F) A) and B)
G) B) and E)

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A negligent misrepresentation results when the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it.

A) True
B) False

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Although there are some exceptions,a[n] ______ mistake does not generally void a contract.


A) Unclear
B) Mutual
C) Unilateral
D) Clear
E) Single

F) All of the above
G) B) and C)

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Scienter is present when the party accused of making the fraudulent assertion believed that the assertion was false or made the claim without any regard for whether it was true or false.

A) True
B) False

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Which of the following occurs in Australia whenever an illegitimate threat is made to hold on to goods unless a payment is made or an agreement is entered into?


A) Unconscionable duress
B) Duress of goods
C) Duress of merchandise
D) Duress of trade
E) Unreasonable duress

F) A) and C)
G) B) and E)

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Constance was buying a used personal watercraft from Ralph.He told her that the engine on the watercraft was in good shape.Constance agreed to pay Ralph $4,000 for the watercraft.She was going to be out of town on vacation,so Ralph and Constance agreed that when she returned in a week,she would bring over the money and pick up the watercraft.During that week,Ralph was notified by the manufacturer that the watercraft was being recalled because it had a faulty engine that needed repair.Ralph said nothing about the condition of the engine or the recall when Constance came to pick up the watercraft.They chatted about other matters; she gave him the $4,000,and took the watercraft.Later,Constance started having problems with the watercraft and found out that Ralph and other initial purchasers had been notified of the issue with the engine.She asked for a refund accusing Ralph of fraud.Ralph refused on the basis that he did not make any misrepresentation.Who is correct and why? For purposes of this question,assume that sales talk or puffery is not at issue.

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Constance is correct.Courts will find no...

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In China which of the following is true regarding the treatment of fraudulent misrepresentations by outsiders?


A) Outsiders have been fined but by law are allowed to continue operation in the country because of the country's concern with joint ventures.
B) Outsiders have been prohibited from doing further business with Chinese firms but not fined because of the country's concern with its reputation with foreign investors.
C) Outsiders are jailed for at least 20 years by law.
D) Outsiders are jailed for at least 10 years, fined heavily, and have all property confiscated.
E) Outsiders have been fined heavily and refused permission to enter into more agreements with Chinese firms.

F) A) and C)
G) None of the above

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Assuming that Lucy fraudulently made a misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct,which of the following is true,considering only the lack of a spring issue,if Marcy does not want to go through with the sale?


A) Marcy may rescind the contract and recover compensatory damages.
B) Marcy may rescind the contract, but she may not recover damages.
C) Marcy may sue for damages, but she may not rescind the contract.
D) Marcy may rescind the contract, or she may keep the contract and sue for damages.
E) Marcy must allow Lucy an opportunity to cure, or fix, the problem; and in the event that is not done, she may not rescind the contract although she can sue for damages.

F) A) and B)
G) B) and C)

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D

Assuming that Lucy innocently made a misrepresentation regarding the spring running through the corner of the farm with no reason to believe that was incorrect,which of the following is true,considering only the lack of a spring issue,if Marcy does not want to go through with the sale?


A) Marcy may rescind the contract and recover compensatory damages.
B) Marcy may rescind the contract, but she may not recover damages.
C) Marcy may sue for damages, but she may not rescind the contract.
D) Marcy may rescind the contract, or she may keep the contract and sue for damages.
E) Marcy has no remedy based on an innocent misrepresentation based on the theory that she should have checked more closely before entering into the contract.

F) None of the above
G) A) and E)

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George offers to sell Penelope a ring that George found in his yard.He and Penelope look at the ring and decide that they are not sure what it is,probably just a shiny stone.Penelope pays George $10 for the ring.The ring turns out to be a diamond worth much more than $10.George wants the ring back,and Penelope refuses.What is the most likely result?


A) The ring will be returned to George because of mutual mistake.
B) The ring will be returned to George because of unilateral mistake.
C) The ring will be returned to George because of equity.
D) The ring will remain with Penelope unless George can establish that he was negligent in not recognizing the ring's true value.
E) The ring will remain with Penelope because the parties contracted on the assumption that they did not know the value of the ring.

F) All of the above
G) B) and C)

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Set forth the factors referenced in the text that enter into a finding of whether undue influence exists.

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(1)Was the dominant party rushing the ot...

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A[n] ______ mistake is a mistake that is shared by both parties to an agreement.


A) Unclear
B) Mutual
C) Unilateral
D) Clear
E) Double

F) B) and E)
G) A) and E)

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Undue influence refers to those special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person and interfere with that person's ability to make his or her own decision.

A) True
B) False

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Threatening physical harm or extortion to gain consent to a contract is classified as undue influence.

A) True
B) False

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When a contract is voidable,it may be ______.


A) Chargeable
B) Rescinded
C) Deassented
D) Reassented
E) Uncharged

F) D) and E)
G) B) and D)

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Which of the following is true on appeal regarding the case of Mary W.Scott v.Mid-Carolina Homes Inc.,discussed in the "Case Nugget" in which the plaintiff sued to recover damages after a salesperson allegedly mistakenly agreed to sell a mobile home to her for a price that was too low,later told her the mobile home could not be sold because of a bent frame,and then proceeded to sell it for a higher price to other buyers?


A) The court refused to find that the defendant had the right to rescind the contract based on the alleged unilateral mistake.
B) The court refused to find that the defendant had the right to rescind the contract because a mutual mistake was involved.
C) The court found that the defendant had the right to rescind the contract because, even though the salesperson acted questionably, the plaintiff had not made a down payment.
D) The court ruled that the defendant had the right to rescind the contract because a unilateral mistake was involved.
E) The court ruled that the defendant had the right to rescind the contract because a mutual mistake was involved.

F) A) and E)
G) B) and D)

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