Question 1

A contractual representation relied upon to induce a contract,cannot be made deliberately false.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following cannot result in a damage award?

Accepted Answer

A) innocent misrepresentation 
B) negligent misrepresentation 
C) fraudulent misrepresentation 
D) breach of contract 
E) silence that distorts a previous assertion 
A) innocent misrepresentation 
B) negligent misrepresentation 
C) fraudulent misrepresentation 
D) breach of contract 
E) silence that distorts a previous assertion

Question 3

Contracts of utmost good faith

Accepted Answer

A) arise when one party is uniquely situated to know the material facts such as an insurance contract. 
B) are the only contracts that do not require any kind of disclosure. 
C) do not require notification of any changes to previously supplied information. 
D) have no bearing on the law of misrepresentation. 
E) allow parties to lie to each other prior to entering into a contract without any legal consequence attaching to those lies. 
A) arise when one party is uniquely situated to know the material facts such as an insurance contract. 
B) are the only contracts that do not require any kind of disclosure. 
C) do not require notification of any changes to previously supplied information. 
D) have no bearing on the law of misrepresentation. 
E) allow parties to lie to each other prior to entering into a contract without any legal consequence attaching to those lies.

Question 4

Can an express term ever be overridden by an implied term? Explain your reasoning and provide an example.

Accepted Answer

Express terms can be overridden by terms

Question 5

Preetpal purchased a ticket to ride on a train from Toronto to Ottawa.After she had boarded the train,she was asked if she wished to place her outerwear and backpack into a storage unit on the train.Because she did not want to be encumbered during her journey,she accepted the offer.She was given a "small baggage claims" ticket before handing over her coat and belongings.When the train arrived in Ottawa,and Preetpal tried to collect her coat,she was told that it could not be found.When she threatened to sue,the person who was representing the train told Preetpal that the back of the "small baggage claims" ticket she received excluded liability for lost or stolen goods.Assuming these are the only exclusions,Preetpal can be bound by the exclusion clause only if

Accepted Answer

A) she actually read it. 
B) it was written in a font that was larger than the font that otherwise appeared on the ticket. 
C) the clause was written in a language that she can read. 
D) it was explained to her when she first bought her train ticket. 
E) she was given reasonable notice of the terms on the back of the ticket before or at the time that she received the ticket. 
A) she actually read it. 
B) it was written in a font that was larger than the font that otherwise appeared on the ticket. 
C) the clause was written in a language that she can read. 
D) it was explained to her when she first bought her train ticket. 
E) she was given reasonable notice of the terms on the back of the ticket before or at the time that she received the ticket.

Question 6

An express term

Accepted Answer

A) is only enforceable if one of the parties agrees to it in writing. 
B) is a statement made by one of the parties to the other party of a contract that a reasonable person would believe was intended to create an enforceable obligation. 
C) is a statement made by one party to induce the other party to enter into an agreement. 
D) sometimes arises as a result of an operation of law. 
E) is a term made by the court ascertaining the industry custom when interpreting the contract. 
A) is only enforceable if one of the parties agrees to it in writing. 
B) is a statement made by one of the parties to the other party of a contract that a reasonable person would believe was intended to create an enforceable obligation. 
C) is a statement made by one party to induce the other party to enter into an agreement. 
D) sometimes arises as a result of an operation of law. 
E) is a term made by the court ascertaining the industry custom when interpreting the contract.

Question 7

Consumer protection laws in several jurisdictions including Manitoba,Northwest Territories,and the Yukon

Accepted Answer

A) make it a crime to sell used goods. 
B) make it a tort to sell used goods. 
C) imply a term in consumer transactions that goods being sold are new unless otherwise described. 
D) imply a term that goods being sold are used unless otherwise described. 
E) have been repealed. 
A) make it a crime to sell used goods. 
B) make it a tort to sell used goods. 
C) imply a term in consumer transactions that goods being sold are new unless otherwise described. 
D) imply a term that goods being sold are used unless otherwise described. 
E) have been repealed.

Question 8

Cavell is selling his CD burner to an acquaintance.Cavell knows that the CD burner has a defect,generating CDs that skip.The acquaintance asks Cavell for his opinion of the machine just before the purchase is to take place.All Cavell says is "I personally like it,but I am not too picky about quality.You should try the machine out before you buy it." Cavell has made a misrepresentation about the quality of the machine.

Accepted Answer

A) True 
 B)False

Question 9

In what sense might a standard form agreement be beneficial to consumers? Briefly explain the downside of standard forms.

Accepted Answer

The economic strategy of a standard form

Question 10

What is meant by the contra proferentum rule?

Accepted Answer

The contra proferendum rule is a default

Question 11

Leilani purchased a business from Troy.She is now interested in the possibility of taking legal action on the basis of an alleged misrepresentation that occurred during the negotiations leading up to the contract.Which of the following statements is TRUE?

Accepted Answer

A) The contract can be rescinded only if Troy made a fraudulent misrepresentation. 
B) If Troy made a negligent misrepresentation,and Troy owed a duty of care to Leilani in making that representation,Leilani may choose to sue in tort rather than rescind the contract. 
C) Because the courts will not punish a person who did not breach an obligation,rescission is not available if Troy merely made an innocent misrepresentation 
D) Because the purpose of rescission is to reverse the effects of a transaction,Leilani will not be able to receive court costs if she rescinds the agreement 
E) Leilani cannot obtain rescission because she can only sue in tort. 
A) The contract can be rescinded only if Troy made a fraudulent misrepresentation. 
B) If Troy made a negligent misrepresentation,and Troy owed a duty of care to Leilani in making that representation,Leilani may choose to sue in tort rather than rescind the contract. 
C) Because the courts will not punish a person who did not breach an obligation,rescission is not available if Troy merely made an innocent misrepresentation 
D) Because the purpose of rescission is to reverse the effects of a transaction,Leilani will not be able to receive court costs if she rescinds the agreement 
E) Leilani cannot obtain rescission because she can only sue in tort.

Question 12

"It is imperative that all business contracts be in writing." Assess this statement.Is it accurate from a legal perspective? It is accurate from the perspective of risk management? Explain your reasoning.

Accepted Answer

It is not legally accurate to say that a

Question 13

What is an exclusion clause? Why would a business want one included in a contract?

Accepted Answer

An exclusion clause is a contractual ter

Question 14

Name a shortcoming of the literal approach to contractual interpretation.Provide an example to illustrate your point.How might this difficulty be overcome?

Accepted Answer

The most obvious shortcoming of the lite

Question 15

Pre-contractual representations are always part of the terms of all contracts.

Accepted Answer

A) True 
 B)False

Question 16

Someone who signs a document in a hurry is never bound by his signature.

Accepted Answer

A) True 
 B)False

Question 17

In order to get Susannah to buy his cottage,Paul tells her that he has recently spent $100 000 in repairs that make its foundations flawless.In love with the cottage and in reliance on Paul's representation,Susannah impulsively trades her condo in the city for the cottage without asking for a home inspection.Two months after she moves into the cottage,Susannah hears a creaking noise during a windy evening.The next morning,she has a home inspector over to take a look.He tells her that there have been no repairs on the house in the last 20 years and that the foundation is in a dangerous state of disrepair.She calls Paul to try to get her condo back but finds out that he has sold the unit and has moved to Bermuda with all of his assets.In seeking orders for rescission and restitution,

Accepted Answer

A) Susannah will most likely succeed in obtaining rescission and restitution,as Paul's misrepresentation is clearly actionable and the parties can be put back their same position by evicting the person to whom Paul sold the condo. 
B) Susannah will likely succeed,and the court will therefore award damages for breach of contract,which is the usual award granted when a party seeks rescission. 
C) Susannah will most likely fail,as Paul's misrepresentation is clearly not actionable. 
D) Susannah will most likely fail because her living in the cottage for two months is an affirmation of Paul's misrepresentation. 
E) Susannah will most likely fail because courts are unlikely to grant rescission when the rights of third parties are affected. 
A) Susannah will most likely succeed in obtaining rescission and restitution,as Paul's misrepresentation is clearly actionable and the parties can be put back their same position by evicting the person to whom Paul sold the condo. 
B) Susannah will likely succeed,and the court will therefore award damages for breach of contract,which is the usual award granted when a party seeks rescission. 
C) Susannah will most likely fail,as Paul's misrepresentation is clearly not actionable. 
D) Susannah will most likely fail because her living in the cottage for two months is an affirmation of Paul's misrepresentation. 
E) Susannah will most likely fail because courts are unlikely to grant rescission when the rights of third parties are affected.

Question 18

If Vasaliki is induced to enter into a contract as a consequence of a statement made by Lampros with reckless indifference as to its truth,Vasaliki has an automatic right to rescission and may also get damages if the statement is fraudulent.

Accepted Answer

A) True 
 B)False

Exam 9: Representations and Terms

A contractual representation relied upon to induce a contract,cannot be made deliberately false.

Which of the following cannot result in a damage award?

Contracts of utmost good faith

Can an express term ever be overridden by an implied term? Explain your reasoning and provide an example.

An express term

Consumer protection laws in several jurisdictions including Manitoba,Northwest Territories,and the Yukon

In what sense might a standard form agreement be beneficial to consumers? Briefly explain the downside of standard forms.

What is meant by the contra proferentum rule?

Leilani purchased a business from Troy.She is now interested in the possibility of taking legal action on the basis of an alleged misrepresentation that occurred during the negotiations leading up to the contract.Which of the following statements is TRUE?

"It is imperative that all business contracts be in writing." Assess this statement.Is it accurate from a legal perspective? It is accurate from the perspective of risk management? Explain your reasoning.

What is an exclusion clause? Why would a business want one included in a contract?

Name a shortcoming of the literal approach to contractual interpretation.Provide an example to illustrate your point.How might this difficulty be overcome?

Pre-contractual representations are always part of the terms of all contracts.

Someone who signs a document in a hurry is never bound by his signature.

If Vasaliki is induced to enter into a contract as a consequence of a statement made by Lampros with reckless indifference as to its truth,Vasaliki has an automatic right to rescission and may also get damages if the statement is fraudulent.

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Contractual Defects

Discharge and Breach

Contractual Remedies

Special Contracts: Sale of Goods

Special Contracts: Negotiable Instruments

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Filters