Question 1

Which statement is true regarding Richard's rights in regards to the car purchase?

Accepted Answer

A)  He will not be able to rescind the contract unless he can prove that he expressly asked Eric if the mileage was run backwards on the car,and Eric failed to reveal that the odometer had been altered.
B)  He will be able to rescind the contract because of the fraudulent misrepresentation on the part of Eric.
C)  He will be able to rescind the contract because of duress practiced by Eric.
D)  He will not be able to rescind the contract because Eric made no affirmative statements.
E)  He will not be able to rescind the contract because the mileage alteration did not affect the engine of the car.F) All of the above
G) A) and D)

Question 2

Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff's mother on the premise that he was the father,although it was later determined that the child was not his?

Accepted Answer

A)  That the agreement to pay $5 million could be rescinded based on a mutual mistake of fact.
B)  That the agreement to pay $5 million could not be rescinded because Jordan waited too long in which to complain about the contract.
C)  That the agreement to pay $5 million could be rescinded based on the mother's fraud.
D)  That the agreement to pay $5 million could be rescinded based on either a mutual mistake of fact or based on the mother's fraud.
E)  That the agreement to pay $5 million could not be rescinded because Jordan was aware of a question about his parentage.F) A) and E)
G) C) and E)

Question 3

Which of the following is false about the concepts of mistake and misrepresentation?

Accepted Answer

A)  Unlike mistake,misrepresentation involves an untruthful assertion of material fact by one of the parties.
B)  Both mistake and misrepresentation scenarios can be unilateral or mutual.
C)  Unlike misrepresentation,mistake involves an untruthful assertion of material fact by one of the parties.
D)  Unlike mistake,in misrepresentation,only one party is in error about a material fact.
E)  Unlike misrepresentation,in mistake,only one party is in error about a material fact.F) C) and D)
G) A) and D)

Question 4

Which statement is true if Jack seeks to rescind the contract for the sale of the Mustang?

Accepted Answer

A)  Jack may not rescind the contract because truth is involved.
B)  Jack may rescind the contract on grounds of defamation.
C)  Jack may rescind the contract on grounds of duress.
D)  Jack may rescind the contract on grounds of fraud.
E)  Jack may rescind the contract on grounds of misappropriation of name or likeness.F) A) and E)
G) A) and D)

Question 5

The active hiding of the truth about a material fact is called nondisclosure.

Accepted Answer

A) True 
 B)False

Question 6

A[n] misrepresentation results from a false statement about a fact material to an agreement that the person making the statement believed to be true.

Accepted Answer

A)  False
B)  Illegal
C)  Misleading
D)  Wrongful
E)  InnocentF) None of the above
G) C) and D)

Question 7

What is absent when a mistake of fact occurs?

Accepted Answer

A)  Legal coherence
B)  Legal assent
C)  Bilateral understanding
D)  Contractual concurrence
E)  Joint reasoningF) D) and E)
G) A) and C)

Question 8

Which of the following is true about scienter and intent to deceive?

Accepted Answer

A)  Scienter and intent to deceive do not involve a party's personal knowledge of the statement's accuracy.
B)  In both scienter and intent to deceive,the party making the statement does not want the contract to be fulfilled on the basis of a falsehood.
C)  Either scienter or intent to deceive can occur when the party making the false statement claims to have personal knowledge of its accuracy.
D)  Scienter can occur when the party making the fraudulent assertion believed it was false;intent to deceive occurs when the person making the false statement claims to have personal knowledge of the statement's accuracy.
E)  Intent to deceive can occur when the party making the fraudulent assertion believed it was false;scienter occurs when the person making the false statement claims to have personal knowledge of the statement's accuracy.F) C) and E)
G) A) and C)

Question 9

What must a party prove in order to obtain money damages based on a fraudulent misrepresentation when damages are sought?

Accepted Answer

1)A false statement about a pa...

Question 10

What must Ky show in order to meet the third requirement necessary to prove mutual mistake?

Accepted Answer

A)  That enforcement of the contract would have an adverse effect on both parties.
B)  That failure to enforce the contract would have an adverse effect on only one party.
C)  That enforcement of the contract would not have an adverse effect on either party.
D)  That failure to enforce the contract would have an adverse effect on both parties.
E)  That enforcement of the contract would have an adverse effect on the party who did not agree to bear the risk of mistake.F) D) and E)
G) A) and B)

Question 11

Fraudulent misrepresentation and intentional misrepresentation are not the same thing.

Accepted Answer

A) True 
 B)False

Question 12

Is the impact of negligent misrepresentation the same as that for fraudulent misrepresentation?

Accepted Answer

A)  Yes,they are identical.The contract can be rescinded.
B)  No,in fraudulent misrepresentation,the contract is void.In a case of negligent misrepresentation,the contract can be rescinded.
C)  No,in negligent misrepresentation,the contract is void.In a case of fraudulent misrepresentation,the contract can be rescinded.
D)  Yes,they are identical.The contract can be rescinded,but the mislead party cannot sue for damages.
E)  Yes,they are identical.The contract is void as a matter of law.F) D) and E)
G) B) and C)

Question 13

Is Ky correct in claiming that the mistake in the division of the accounts is material?

Accepted Answer

A)  Yes,because only one party must show that the mistake was not what was intended.
B)  No,because the mistake was in the financial information.
C)  Yes,because Ty made a mutual mistake.
D)  Yes,if it was a basis for Ky's agreeing to enter into the contract.
E)  No,because the mistake is not mutual since only Ty,and not Roland,was adversely affected.F) B) and C)
G) D) and E)

Question 14

A[n] ________ is a false representation of a material fact that is consciously false and intended to mislead the other party.

Accepted Answer

A)  Scienter misrepresentation
B)  Fraudulent misrepresentation
C)  Acknowledged misrepresentation
D)  Negligent misrepresentation
E)  True misrepresentationF) B) and C)
G) D) and E)

Question 15

Courts find negligent misrepresentation only when the party making the false statement ________.

Accepted Answer

A)  should have known the truth using the skills and competence required of a person in his position or profession.
B)  should have known the truth.
C)  should have known the truth using the skills and competence required of regular person.
D)  verified the truth and negligently continued with the false statement.
E)  should have known he or she was committing negligent.F) A) and B)
G) A) and C)

Question 16

Intent to deceive may not be inferred when a fraudulent misrepresentation is at issue.

Accepted Answer

A) True 
 B)False

Question 17

What would be the most likely result if Eric attempts to rescind the agreement to rent the apartment?

Accepted Answer

A)  He will be able to rescind the contract because of undue influence.
B)  He will not be able to rescind the agreement unless he can show that he was not actually convicted of the crime alleged.
C)  He will not be able to rescind the contract because he agreed to it.
D)  He will be able to rescind the agreement based upon Richard's threat of extortion.
E)  He will be able to rescind the agreement based upon the threat to Richard's economic interests.F) A) and B)
G) B) and D)

Question 18

________ occurs when the party making the false statement claims to have or implies having personal knowledge of its accuracy.

Accepted Answer

A)  Intent to harm.
B)  Scienter.
C)  Falsity.
D)  Intent to deceive.
E)  Accuracy misrepresentation.F) A) and B)
G) All of the above

Question 19

Which of the following is true regarding the effect of an innocent misrepresentation on a contract?

Accepted Answer

A)  The contract is automatically void and of no effect,and the party who was misled may recover damages.
B)  It permits the party that was misled by the false statement to rescind the contract,but damages are not available.
C)  It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract.
D)  It permits either the party that was misled by the false statement or the party who made the false statement to rescind the contract,and it also makes the contract void and of no effect.
E)  It permits the party who made the false statement to rescind the contract.F) D) and E)
G) A) and B)

Question 20

Which of the following was the result in the case in the text,Fantastic Sams Salons Corp.v.PSTEVO,LLC and Jeremy Baker,in which the court considered PSTEVO's counterclaim for fraudulent misrepresentation with regard to a franchise agreement?

Accepted Answer

A)  The counterclaim was dismissed because the disclaimer in the contract prohibited defendants from filing a claim.
B)  The counterclaim was dismissed even though the disclaimer was invalid.
C)  It is illegal to force a party to sign a disclaimer about representations made,and thus defendants were allowed to proceed with their counterclaim.
D)  The disclaimer was invalid and thus defendants were allowed to proceed with their counterclaim.
E)  The counterclaim was dismissed because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.F) C) and D)
G) B) and E)

Exam 17: Legal Assent

A[n] ________ is a false representation of a material fact that is consciously false and intended to mislead the other party.

Correct AnswerverifiedShow Answer

Is the impact of negligent misrepresentation the same as that for fraudulent misrepresentation?

Correct AnswerverifiedShow Answer

A[n] misrepresentation results from a false statement about a fact material to an agreement that the person making the statement believed to be true.

Correct AnswerverifiedShow Answer

What must Ky show in order to meet the third requirement necessary to prove mutual mistake?

Correct AnswerverifiedShow Answer

Which statement is true regarding Richard's rights in regards to the car purchase?

Correct AnswerverifiedShow Answer

Courts find negligent misrepresentation only when the party making the false statement ________.

Correct AnswerverifiedShow Answer

________ occurs when the party making the false statement claims to have or implies having personal knowledge of its accuracy.

Correct AnswerverifiedShow Answer

The active hiding of the truth about a material fact is called nondisclosure.

Correct AnswerverifiedShow Answer

What is absent when a mistake of fact occurs?

Correct AnswerverifiedShow Answer

Fraudulent misrepresentation and intentional misrepresentation are not the same thing.

Correct AnswerverifiedShow Answer

What must a party prove in order to obtain money damages based on a fraudulent misrepresentation when damages are sought?

Correct Answerverified1)A false statement about a pa...View AnswerShow Answer

Is Ky correct in claiming that the mistake in the division of the accounts is material?

Correct AnswerverifiedShow Answer

Which of the following was the result in the case in the text,Fantastic Sams Salons Corp.v.PSTEVO,LLC and Jeremy Baker,in which the court considered PSTEVO's counterclaim for fraudulent misrepresentation with regard to a franchise agreement?

Correct AnswerverifiedShow Answer

Which of the following is false about the concepts of mistake and misrepresentation?

Correct AnswerverifiedShow Answer

Intent to deceive may not be inferred when a fraudulent misrepresentation is at issue.

Correct AnswerverifiedShow Answer

Which of the following was the result on appeal in the Case Opener involving the claim that Michael Jordan owed $5 million based on his agreement to pay the plaintiff's mother on the premise that he was the father,although it was later determined that the child was not his?

Correct AnswerverifiedShow Answer

Which statement is true if Jack seeks to rescind the contract for the sale of the Mustang?

Correct AnswerverifiedShow Answer

What would be the most likely result if Eric attempts to rescind the agreement to rent the apartment?

Correct AnswerverifiedShow Answer

Which of the following is true about scienter and intent to deceive?

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of an innocent misrepresentation on a contract?

Correct AnswerverifiedShow Answer

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1)A false statement about a pa...
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