Question 1

For a misrepresentation to be actionable as fraud in the inducement, it must be a misrepresentation of opinion.

Accepted Answer

A) True 
 B)False

Question 2

Acts constituting duress are necessarily crimes or torts in themselves.

Accepted Answer

A) True 
 B)False

Question 3

Contracts induced by threats of __________ are voidable, regardless of whether the coerced party has committed an unlawful act.

Accepted Answer

A)  civil prosecution 
B)  criminal prosecution 
C)  tortious conduct 
D)  a lawsuit to recover a debt 
A)  civil prosecution 
B)  criminal prosecution 
C)  tortious conduct 
D)  a lawsuit to recover a debt

Question 4

Scienter is a legal term which means:

Accepted Answer

A)  that a buyer has justifiably relied upon the seller's representation. 
B)  that the seller had knowledge that his statements were false and the statements were made with the intention to deceive. 
C)  sales puffery. 
D)  All of these. 
A)  that a buyer has justifiably relied upon the seller's representation. 
B)  that the seller had knowledge that his statements were false and the statements were made with the intention to deceive. 
C)  sales puffery. 
D)  All of these.

Question 5

Under the Restatement, if the parties to a contract attach materially different meanings to their manifestations and neither party knows or has reason to know the meaning attached by the other:

Accepted Answer

A)  and neither party is to blame, there is no contract at all. 
B)  and both parties are to blame, there is no contract at all. 
C)  and one party is to blame, that party will be held responsible, but the contract is not void. 
D)  All of these. 
A)  and neither party is to blame, there is no contract at all. 
B)  and both parties are to blame, there is no contract at all. 
C)  and one party is to blame, that party will be held responsible, but the contract is not void. 
D)  All of these.

Question 6

Hal holds a gun to Irving's head and tells him to sign the contract.Irving signs the contract, because he fears for his personal safety.The contract is void, because it was entered into under duress.

Accepted Answer

A) True 
 B)False

Question 7

Attorney Geraldine advises her client, Rick, to enter a contract, which ultimately would have benefited Geraldine but not Rick.The test of whether the contract, if entered, is voidable based on undue influence is whether Geraldine's advice would have dominated the thinking of an ordinary, reasonable person rather than whether it dominated Rick's mind or emotions.

Accepted Answer

A) True 
 B)False

Question 8

In the Lesher v.Strid case, the court held that:

Accepted Answer

A)  a representation is material if it is likely to influence a reasonable person. 
B)  for a misrepresentation to be actionable, it must be one of fact rather than of opinion. 
C)  a mutual mistake of fact renders a contract voidable by the adversely affected party if the mistake is so fundamental that it frustrates the purpose of the contract. 
D)  the contract's "as is" clause expressly excluded reliance on extrinsic representations such as the defendant's representation about the four-acre water rights. 
A)  a representation is material if it is likely to influence a reasonable person. 
B)  for a misrepresentation to be actionable, it must be one of fact rather than of opinion. 
C)  a mutual mistake of fact renders a contract voidable by the adversely affected party if the mistake is so fundamental that it frustrates the purpose of the contract. 
D)  the contract's "as is" clause expressly excluded reliance on extrinsic representations such as the defendant's representation about the four-acre water rights.

Question 9

If the act or threat would affect a person of average strength and intelligence, then and only then will the act constitute duress.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is correct with regard to duress?

Accepted Answer

A)  It always renders a contract void. 
B)  Duress by improper threats or acts is the more common form of duress. 
C)  The wrongful act must be either a crime or a tort in order to be considered wrongful. 
D)  All of these. 
A)  It always renders a contract void. 
B)  Duress by improper threats or acts is the more common form of duress. 
C)  The wrongful act must be either a crime or a tort in order to be considered wrongful. 
D)  All of these.

Question 11

The remedies of damages and rescission are available for:

Accepted Answer

A)  material fraudulent misrepresentation. 
B)  negligent misrepresentation. 
C)  innocent misrepresentation 
D)  All of these . 
A)  material fraudulent misrepresentation. 
B)  negligent misrepresentation. 
C)  innocent misrepresentation 
D)  All of these .

Question 12

Economic coercion that compels a person to enter into a contract renders that contract void.

Accepted Answer

A) True 
 B)False

Question 13

The test for duress is objective and the act constituting duress must be a tort or a crime in order to be wrongful.

Accepted Answer

A) True 
 B)False

Question 14

The law requires that to form a valid contract the agreement must be voluntary and knowing.

Accepted Answer

A) True 
 B)False

Question 15

An act that is not wrongful or unfair may constitute duress.

Accepted Answer

A) True 
 B)False

Question 16

What are the two types of fraud and what is the effect of each on the contract involved? Give an example of each type of fraud.

Accepted Answer

Fraud in the execution is a misrepresent

Question 17

Which of the following, if any, are requisites for fraud in the inducement?

Accepted Answer

A)  False representation of a fact that is material. 
B)  Representation is made with knowledge of its falsity and the intention to deceive. 
C)  The representation is justifiably relied on. 
D)  All of these. 
E)  Two, but not all of these. 
A)  False representation of a fact that is material. 
B)  Representation is made with knowledge of its falsity and the intention to deceive. 
C)  The representation is justifiably relied on. 
D)  All of these. 
E)  Two, but not all of these.

Question 18

Pat told her friends that her car got 35 miles to the gallon in the city when in reality it only got 20 miles per gallon.When Pat decides to sell and one these friends decides to buy the car, Pat is under no duty to tell the correct figure unless asked.

Accepted Answer

A) True 
 B)False

Question 19

In the case of Rea v.Paulson , the court found no undue influence because the party in the dominant position had insisted that the weaker party seek independent advice about deeding her house.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following results in a void, rather than voidable, agreement?

Accepted Answer

A)  Duress by improper threat. 
B)  Fraud in the execution. 
C)  Fraud in the inducement. 
D)  Undue influence. 
A)  Duress by improper threat. 
B)  Fraud in the execution. 
C)  Fraud in the inducement. 
D)  Undue influence.

Exam 11: Conduct Invalidating Assent

For a misrepresentation to be actionable as fraud in the inducement, it must be a misrepresentation of opinion.

Acts constituting duress are necessarily crimes or torts in themselves.

Contracts induced by threats of __________ are voidable, regardless of whether the coerced party has committed an unlawful act.

Scienter is a legal term which means:

Under the Restatement, if the parties to a contract attach materially different meanings to their manifestations and neither party knows or has reason to know the meaning attached by the other:

Hal holds a gun to Irving's head and tells him to sign the contract.Irving signs the contract, because he fears for his personal safety.The contract is void, because it was entered into under duress.

In the Lesher v.Strid case, the court held that:

If the act or threat would affect a person of average strength and intelligence, then and only then will the act constitute duress.

Which of the following is correct with regard to duress?

The remedies of damages and rescission are available for:

Economic coercion that compels a person to enter into a contract renders that contract void.

The test for duress is objective and the act constituting duress must be a tort or a crime in order to be wrongful.

The law requires that to form a valid contract the agreement must be voluntary and knowing.

An act that is not wrongful or unfair may constitute duress.

What are the two types of fraud and what is the effect of each on the contract involved? Give an example of each type of fraud.

Which of the following, if any, are requisites for fraud in the inducement?

Pat told her friends that her car got 35 miles to the gallon in the city when in reality it only got 20 miles per gallon.When Pat decides to sell and one these friends decides to buy the car, Pat is under no duty to tell the correct figure unless asked.

In the case of Rea v.Paulson , the court found no undue influence because the party in the dominant position had insisted that the weaker party seek independent advice about deeding her house.

Which of the following results in a void, rather than voidable, agreement?

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters