Question 1

Fraud can occur when a person takes steps to conceal a material fact.

Accepted Answer

A) True 
 B)False

Question 2

Genuine assent may be lacking because of misrepresentation, fraud, duress, undue influence, or unconscionability.

Accepted Answer

A) True 
 B)False

Question 3

Your boss threatens to fire you if you do not buy 10 boxes of his daughter's Girl Scout Cookies. You begrudgingly buy the 10 boxes of thin mints for fear that you will lose your job. Would this be an example of duress?

Accepted Answer

A)  No because everyone loves thin mints and therefore the reasonable person would not feel a detriment. 
B)  No because the reasonable person, objectively, would not truly feel pressured into the contract. 
C)  Yes but only if you can prove that you do not like thin mints. 
D)  Yes because duress is determined by what the person put under pressure feels, not the reasonable person. 
A)  No because everyone loves thin mints and therefore the reasonable person would not feel a detriment. 
B)  No because the reasonable person, objectively, would not truly feel pressured into the contract. 
C)  Yes but only if you can prove that you do not like thin mints. 
D)  Yes because duress is determined by what the person put under pressure feels, not the reasonable person.

Question 4

If a person unintentionally engages in innocent misrepresentation, the other party may

Accepted Answer

A)  Sue for trebble damages 
B)  Recover consequential damages 
C)  Avoid the contract 
D)  Sue for punitive damages 
A)  Sue for trebble damages 
B)  Recover consequential damages 
C)  Avoid the contract 
D)  Sue for punitive damages

Question 5

Explain why most courts employ the parol evidence rule in contract interpretation.

Accepted Answer

Students' answers will vary but a well-w

Question 6

The parol evidence rule states that any oral agreements made that contradict the intended final writing of the agreement are not enforceable.

Accepted Answer

A) True 
 B)False

Question 7

Innocent misrepresentation includes all of the following except

Accepted Answer

A)  The person making the representation believes it to be true 
B)  There is no intention to deceive 
C)  The aggrieved party can avoid the contract 
D)  The aggrieved party can recover punitive damages 
A)  The person making the representation believes it to be true 
B)  There is no intention to deceive 
C)  The aggrieved party can avoid the contract 
D)  The aggrieved party can recover punitive damages

Question 8

Explain why the court, in Vokes v. Arthur Murray Dance Studio, ruled that a dance instructor's statements that would normally be seen as an opinion were, in reality, statements of fact.

Accepted Answer

The dance instructor had 'superior knowl

Question 9

The main purpose of the statute of frauds is to

Accepted Answer

A)  Ensure that both parties have equal bargaining power. 
B)  Create an equal exchange of information so that both parties can make an informed decision. 
C)  Prevent fraud by requiring a written contract to have written evidence of the agreement. 
D)  Encourage parties to operate ethically and morally. 
A)  Ensure that both parties have equal bargaining power. 
B)  Create an equal exchange of information so that both parties can make an informed decision. 
C)  Prevent fraud by requiring a written contract to have written evidence of the agreement. 
D)  Encourage parties to operate ethically and morally.

Exam 9: Enforceability

Fraud can occur when a person takes steps to conceal a material fact.

Genuine assent may be lacking because of misrepresentation, fraud, duress, undue influence, or unconscionability.

Your boss threatens to fire you if you do not buy 10 boxes of his daughter's Girl Scout Cookies. You begrudgingly buy the 10 boxes of thin mints for fear that you will lose your job. Would this be an example of duress?

If a person unintentionally engages in innocent misrepresentation, the other party may

Explain why most courts employ the parol evidence rule in contract interpretation.

The parol evidence rule states that any oral agreements made that contradict the intended final writing of the agreement are not enforceable.

Innocent misrepresentation includes all of the following except

Explain why the court, in Vokes v. Arthur Murray Dance Studio, ruled that a dance instructor's statements that would normally be seen as an opinion were, in reality, statements of fact.

The main purpose of the statute of frauds is to

Legal Foundations and Thinking Strategically

Business, Societal, and Ethical Contexts of Law

Business and the Constitution

The American Judicial System, Jurisdiction, and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution

Contracts: Overview, Definition, Categories, and Source of Law

Mutual Assent: Agreement and Consideration

Capacity and Legality

Performance

Breach and Remedies

Contracts for the Sale of Goods: Overview of Article 2

Sales Contracts: Agreement, Consideration, and the Statute of Frauds

Title, Allocation of Risk, and Insurable Interest

Performance and Cure in Sales Contracts

Breach and Remedies in a Sales Transaction

UCC Article 2A: Lease Contracts

Sales Warranties

Definition, Creation, and Categories of Negotiable Instruments

Negotiation, Endorsements, and Holder in Due Course

Liability, Defenses, and Discharge

Checks, Deposits, and Financial Institutions

Secured Transactions

Creditors Rights

Alternatives for Insolvent Borrowers

Bankruptcy

Choice of Business Entity and Sole Proprietorships

Partnerships

Limited Liability Partnerships and Limited Liability Companies

Corporations: Formation and Organization

Corporate Transactions: Acquisitions and Mergers

Overview of the Securities Market: Definition, Categories, and Regulation

Regulation of Issuance: The Securities Act of 1933

Regulation of Trading: The Securities Exchange Act of 1934

Regulation of Corporate Governance

Regulation of Financial Markets

Agency Formation, Categories, and Authority

Duties and Liabilities of Principals and Agents

Employment at Will

Employment Regulation and Labor Law

Employment Discrimination

Torts and Products Liability

Administrative Law

Consumer Protection

Criminal Law and Procedure

Insurance Law

Environmental Law

Personal Property, Real Property, and Land Use Law

Wills, Trusts, and Estates

Intellectual Property

Filters