Question 1

Which of the following refers to special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person?

Accepted Answer

A)  Fraudulent misrepresentation
B)  Pressing dominance
C)  Relationship dominance
D)  Undue influence
E)  Pressing persuasionF) All of the above
G) A) and E)

Question 2

[Pet Pig Farm] Jen was interested in buying Monique's land in order to breed small pet pigs.Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs.Monique assured her that a spring ran through one corner of the property.Therefore,Jen agreed to buy the farm.Jen,who loved pigs,assumed that the neighbors would be pleased with the pigs being in the area.Monique also agreed to sell Jen a used truck for $5,000.After the contract for the land sale was entered into,Jen had a land survey done,and it was discovered that the spring did not actually run through the corner of Monique's property.The area in which the spring ran belonged to a neighbor.Additionally,when Monique brought Jen the used truck,Jen said,"That's not the truck!" It was discovered that Monique,who had two trucks,thought that Jen had bought the older truck although Jen thought she had purchased the newer truck.Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance.It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries.
-Assuming that Monique made an innocent misrepresentation regarding the spring running through the corner of the farm with no reason to believe that this item was incorrect,which of the following is true,considering only the lack of a spring issue,if Jen does not want to go through with the sale?

Accepted Answer

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

Question 3

Both European and U.S.courts will interfere with a contract just because the value of the item in question has changed since the agreement.

Accepted Answer

A) True 
 B)False

Question 4

Why is it important to distinguish between unilateral and mutual mistakes?

Accepted Answer

A)  Because it determines which contracts lack consideration.
B)  Because it determines how much may be awarded in damages under a contract.
C)  Because it determines whether punitive damages may be awarded.
D)  Because it determines which contracts are voidable.
E)  Because it determines which contracts are considered fraudulent.F) A) and E)
G) D) and E)

Question 5

Which statement would be the result if Jen attempts to rescind the contract and recover damages only on the basis of the neighbor's objection to a pig farm?

Accepted Answer

A)  Jen may rescind the contract and recover damages because Monique made an implied misrepresentation.
B)  Jen may rescind the contract but may not recover damages because Monique made an implied misrepresentation.
C)  Jen may not rescind the contract nor may she recover damages because she,Jen,made a unilateral mistake.
D)  Jen may rescind the contract but may not recover damages because she,Jen,made a unilateral mistake.
E)  Jen may recover damages but may not rescind the contract because Monique made an implied misrepresentation.F) B) and E)
G) A) and D)

Question 6

Either party can choose to ________ the contract in cases where both parties to a contract are mistaken about either a current or a past material fact.

Accepted Answer

A)  Refute
B)  Confirm
C)  Rescind
D)  Disclaim
E)  UpholdF) All of the above
G) C) and D)

Question 7

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?

Accepted Answer

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

Question 8

Valerie promised to buy Nicole's car for $2,000.Nicole drew up the contract providing that the exchange would occur the next week.Unfortunately,Nicole was not very good with the keyboard and typed in $1,200 as the price of the car.Valerie noticed that the contract said $1,200,not $2,000,and was very pleased.She signed it without saying anything.When it was time to make the exchange,Valerie gave Nicole $1,200.In response to Nicole's inquiry regarding an additional
$800,Valerie pulled out the contract and showed her that it said $1,200.Nicole immediately responded that she had made a typographical error.Valerie said that there was no mistake on her part because she knew exactly what she was doing and that she thought that Nicole had decided to give her a deal on the car.Which of the following is Nicole's best argument for a rescission of the contract?

Accepted Answer

A)  That because a bilateral contract,as well as a unilateral mistake was involved,most courts would grant relief.
B)  That duress was involved because of Valerie's wrongful behavior.
C)  That a unilateral mistake was involved and that courts typically allow relief in situations involving unilateral mistakes as opposed to mutual mistakes.
D)  That the mistake resulted from a sale of goods,as opposed to the provision of services,and that courts are more likely to grant relief for a mistake when actual physical work is not involved.
E)  That the mistake resulted from an accidental clerical error and that it would be unconscionable to enforce the contract.F) C) and D)
G) B) and C)

Question 9

Which of the following involves the active hiding of the truth about a material fact?

Accepted Answer

A)  Negligence
B)  Masking
C)  Concealment
D)  Nondisclosure
E)  VeilingF) A) and D)
G) A) and C)

Question 10

Madison purchased a three-year-old computer from Kami for $300.Kami told her the price seemed fair but she really had no idea what it was worth and just wanted to get rid of it.Madison,who knew little about computers,thought she had a great deal.After Madison returned home,she discovered from a computer expert friend of hers that the computer was not worth as much as she believed.Madison wanted to return the computer claiming that they were both mistaken about value,but Kami said,"No way!" Who should win in the dispute between Madison and Kami and why?

Accepted Answer

A)  Kami should win because Madison's unilateral mistake does not void the contract.
B)  Kami should win because mistaken beliefs about the subjective value of an item do not affect the validity of a contract.
C)  Madison should win because there was a mistake of fact at the time the contract was entered.
D)  Madison should win because mistaken beliefs about the subjective value of an item can affect the validity of a contract.
E)  Madison should win because there was a unilateral mistake of fact.F) D) and E)
G) B) and D)

Question 11

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.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following theories involve scienter?

Accepted Answer

A)  Fraudulent misrepresentation,intentional misrepresentation.
B)  Mutual mistake only.
C)  Fraudulent misrepresentation only.
D)  Innocent misrepresentation,mutual mistake.
E)  Innocent misrepresentation,fraudulent misrepresentation.F) B) and E)
G) A) and D)

Question 13

What did the court rule in Porter v.Domtar Paper Company,LLC,the case in the text in which the plaintiff alleged he signed a Release and Separation Agreement under the duress of losing his job,and thus the Release and Separation Agreement should be void?

Accepted Answer

A)  Defendant's motion to dismiss plaintiff's duress claim was granted,finding the Release was voluntary since he was not under the duress of losing his home if he did not sign.
B)  Defendant's motion to dismiss plaintiff's duress claim was granted,finding the Release was voluntary since Plaintiff signed the Release the day after he was fired,and thus he was not under the duress of losing his job if he did not sign.
C)  Plaintiff's claim of discrimination was not barred by the Release because Plaintiff was under the duress of losing his job if he did not sign.
D)  Plaintiff's claim of discrimination was not barred by the Release because Plaintiff was under the duress of a hostile working environment if he did not sign.
E)  Plaintiff's claim of discrimination was not barred by the Release because Plaintiff was under the duress of further discrimination if he did not sign.F) B) and E)
G) A) and B)

Question 14

Assuming that Monique made a fraudulent 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 Jen does not want to go through with the sale?

Accepted Answer

A)  Jen must allow Monique 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.
B)  Jen may rescind the contract,or she may keep the contract and sue for damages.
C)  Jen may sue for damages,but she may not rescind the contract.
D)  Jen may rescind the contract,but she may not recover damages.
E)  Jen may rescind the contract and recover compensatory damages.F) B) and E)
G) None of the above

Question 15

Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Accepted Answer

A)  Durable fraud
B)  Duress
C)  Undue influence
D)  Coercion
E)  Criminal influenceF) C) and D)
G) C) and E)

Question 16

Angela is Piper's business law professor.Angela wants to enter into a contract with Piper for Piper to serve as her personal assistant.To avoid any potential claim of undue influence,what would be the best advice for Angela?

Accepted Answer

A)  Make sure that Piper has independent advice before entering into the contract.
B)  Make sure Piper is qualified for the job.
C)  Make sure Piper is paid fairly.
D)  Do a background check on Piper.
E)  Make sure the contract does not contain any mistakes.F) C) and D)
G) A) and D)

Question 17

One way to prevent a claim of misrepresentation is to add a[n] to a contract.

Accepted Answer

A)  Consideration
B)  Specific Anti-Misrepresentation Clause
C)  Legal assent
D)  Scienter clause
E)  DisclaimerF) B) and D)
G) B) and C)

Question 18

Monica and Omar talk about the fact that a new teacher is being hired for business law at their school.Omar mentions that he does not yet have a book,and Monica agreed to sell Omar a used business law book for $30 for the upcoming semester.When the new semester begins,the new business law teacher announces that a new custom business law text will be used that is only available in the campus bookstore.Omar wants a refund.Which of the following is Monica's best defense?

Accepted Answer

A)  That only a unilateral mistake was involved on Omar's behalf because Monica was aware of the change and that,therefore,Omar is not entitled to a discharge.
B)  That a mutual mistake was involved and that Omar is,therefore,not entitled to a refund.
C)  That she did not commit fraud and that,therefore,Omar is not entitled to rescission.
D)  That transactions involving goods are not subject to the defense of mistake.
E)  That Omar knew of the change of teacher and bore the risk of mistake.F) A) and E)
G) A) and D)

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

[Everlasting roses] Wanda's gardener claims that if she will pay him to apply a special treatment to her roses each week,the roses would never die.Wanda pays the gardener $25 each week for the special treatment.After a year,her favorite rosebush dies.
-Does Wanda have a valid claim for fraudulent misrepresentation?

Accepted Answer

A)  Yes,because she relied on the false statement and the gardener intended to deceive her.
B)  Yes,but only if she relied on the false statement.
C)  No,because Wanda knew or should have known by the extravagance of the claim that the statement about the roses never dying was false.
D)  No,unless she can prove the gardener intended to deceive her.
E)  Yes,but only if the false statement is material to the contract.F) All of the above
G) C) and D)

Exam 17: Legal Assent

Angela is Piper's business law professor.Angela wants to enter into a contract with Piper for Piper to serve as her personal assistant.To avoid any potential claim of undue influence,what would be the best advice for Angela?

Correct Answer
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Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Correct Answer
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Correct Answer
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Correct Answer
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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.

Correct Answer
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Correct Answer
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Both European and U.S.courts will interfere with a contract just because the value of the item in question has changed since the agreement.

Correct Answer
verified

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.

Correct Answer
verified

Correct Answer
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Assuming that Monique made a fraudulent 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 Jen does not want to go through with the sale?

Correct Answer
verified

Correct Answer
verified

Which of the following involves the active hiding of the truth about a material fact?

Correct Answer
verified

One way to prevent a claim of misrepresentation is to add a[n] to a contract.

Correct Answer
verified

Which of the following refers to special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person?

Correct Answer
verified

Either party can choose to ________ the contract in cases where both parties to a contract are mistaken about either a current or a past material fact.

Correct Answer
verified

Which of the following theories involve scienter?

Correct Answer
verified

Which statement would be the result if Jen attempts to rescind the contract and recover damages only on the basis of the neighbor's objection to a pig farm?

Correct Answer
verified

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?

Correct Answer
verified

What did the court rule in Porter v.Domtar Paper Company,LLC,the case in the text in which the plaintiff alleged he signed a Release and Separation Agreement under the duress of losing his job,and thus the Release and Separation Agreement should be void?

Correct Answer
verified

Why is it important to distinguish between unilateral and mutual mistakes?

Correct Answer
verified

Exam 17: Legal Assent

Angela is Piper's business law professor.Angela wants to enter into a contract with Piper for Piper to serve as her personal assistant.To avoid any potential claim of undue influence,what would be the best advice for Angela?

Correct AnswerverifiedShow Answer

Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Both European and U.S.courts will interfere with a contract just because the value of the item in question has changed since the agreement.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Assuming that Monique made a fraudulent 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 Jen does not want to go through with the sale?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following involves the active hiding of the truth about a material fact?

Correct AnswerverifiedShow Answer

One way to prevent a claim of misrepresentation is to add a[n] to a contract.

Correct AnswerverifiedShow Answer

Which of the following refers to special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person?

Correct AnswerverifiedShow Answer

Either party can choose to ________ the contract in cases where both parties to a contract are mistaken about either a current or a past material fact.

Correct AnswerverifiedShow Answer

Which of the following theories involve scienter?

Correct AnswerverifiedShow Answer

Which statement would be the result if Jen attempts to rescind the contract and recover damages only on the basis of the neighbor's objection to a pig farm?

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What did the court rule in Porter v.Domtar Paper Company,LLC,the case in the text in which the plaintiff alleged he signed a Release and Separation Agreement under the duress of losing his job,and thus the Release and Separation Agreement should be void?

Correct AnswerverifiedShow Answer

Why is it important to distinguish between unilateral and mutual mistakes?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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