Question 1

Which is the correct legal term,if any,for Eric's action in regard to running back the odometer?

Accepted Answer

A) Active duress. 
B) Conscious disregard. 
C) Concealment. 
D) Nondisclosure. 
E) There is no legal term because although he acted illegally,Richard had no duty to disclose his action and incriminate himself. 
A) Active duress. 
B) Conscious disregard. 
C) Concealment. 
D) Nondisclosure. 
E) There is no legal term because although he acted illegally,Richard had no duty to disclose his action and incriminate himself. C

Question 2

In which of the following examples would a court be least likely to find that nondisclosure has the same legal effect as an actual false assertion?

Accepted Answer

A) Despite the state's mandatory disclosure law,Vito fails to mention the mold in his basement. 
B) The contract involves a sale of a car with bad brakes. 
C) One of the parties to the contract is the other's doctor. 
D) Caroline fails to inform Vito of the recent outbreak of rust on her "rust-free" car that Vito had already agreed to purchase. 
E) Vito permits magazines orders to ship that are missing some pages. 
A) Despite the state's mandatory disclosure law,Vito fails to mention the mold in his basement. 
B) The contract involves a sale of a car with bad brakes. 
C) One of the parties to the contract is the other's doctor. 
D) Caroline fails to inform Vito of the recent outbreak of rust on her "rust-free" car that Vito had already agreed to purchase. 
E) Vito permits magazines orders to ship that are missing some pages. E

Question 3

When a person who makes a misrepresentation has no knowledge about the falsity of the claim,it is said that the person lacked ________.

Accepted Answer

A) Scienter 
B) Plotting 
C) Information 
D) Premeditation 
E) Planning 
A) Scienter 
B) Plotting 
C) Information 
D) Premeditation 
E) Planning A

Question 4

The result of an error by one party about a material fact is a[n] ________ mistake.

Accepted Answer

A) Clear 
B) Unclear 
C) Unilateral 
D) Mutual 
E) Single 
A) Clear 
B) Unclear 
C) Unilateral 
D) Mutual 
E) Single

Question 5

Although there are some exceptions,a[n] ________ mistake does not generally void a contract.

Accepted Answer

A) Clear 
B) Unclear 
C) Mutual 
D) Single 
E) Unilatera l 
A) Clear 
B) Unclear 
C) Mutual 
D) Single 
E) Unilatera l

Question 6

involves a promise to buy or sell that the courts will require the parties to obey.

Accepted Answer

A) Bilateral assent 
B) Legal assent 
C) Contractual affirmance 
D) A special agreement 
E) Legal affirmance 
A) Bilateral assent 
B) Legal assent 
C) Contractual affirmance 
D) A special agreement 
E) Legal affirmance

Question 7

The rules about legal assent were developed to make business transactions smoother and more dependable.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following refers to an intentional failure to provide pertinent information about a projected contract?

Accepted Answer

A) Secretion 
B) Concealment 
C) Entombment 
D) Nondisclosure 
E) Negligence 
A) Secretion 
B) Concealment 
C) Entombment 
D) Nondisclosure 
E) Negligence

Question 9

[Elton's Electronics] Elton's Electronics sells electronic housewares.Elton is looking for a new supplier to produce the standard-sized switchplate for its best-selling blender.He contacts Porter and provides Porter with specifications for where the switches on the switchplate should be placed.Porter provides excellent pricing and delivery terms,which would save Elton a lot of money.Elton and Porter sign a contract for Porter to produce 10,000 standard-sized switchplates according to Elton's specifications.When the completed switchplates arrive,Elton's employees attach them on the face of the blender,however,the standard-sized switchplates are two millimeters too long.Elton is furious and calls Porter,who says Elton can send back the switchplates and Porter's company can re-work them,but there will be a fee because the switchplates he shipped were "standard-size" switchplates,as specified in the contract.Elton disagrees and hangs up the phone.Elton's technician measures both the switchplates and the blender and discovers that the blender face where the switchplate is attached is two millimeters shorter than the well-known,"standard-size" switchplate.The technician suggests they could shave off two millimeters from Porter's boards to make them fit on the blenders,however,it would be a lot of work.
-Which of the following best describes Elton's situation?

Accepted Answer

A) Mutual mistake,because both parties were mistaken about the standard-size switchplates to be delivered under the contract. 
B) Duress,because Porter knows much more about the standard size for switchplates in the industry than Elton. 
C) Fraudulent misrepresentation,because Elton justifiably relied on a false statement by Porter. 
D) Unilateral mistake,because Elton was mistaken about the size of the switchplates he needed for his blenders. 
E) Negligent misrepresentation,because Porter should have known that the standard-size may not work for everyone. 
A) Mutual mistake,because both parties were mistaken about the standard-size switchplates to be delivered under the contract. 
B) Duress,because Porter knows much more about the standard size for switchplates in the industry than Elton. 
C) Fraudulent misrepresentation,because Elton justifiably relied on a false statement by Porter. 
D) Unilateral mistake,because Elton was mistaken about the size of the switchplates he needed for his blenders. 
E) Negligent misrepresentation,because Porter should have known that the standard-size may not work for everyone.

Question 10

Zara and Wahid have a lot of money invested with a stockbroker named Dion and also with other brokers.Zara and Wahid decided to divorce.Zara was really interested in investments,so the divorce decree provided that Zara would retain "all investment accounts," and Wahid would receive a "cash settlement" from funds the parties had in the bank.Six months after the divorce was final,it was discovered that Dion had absconded to parts unknown with all the money invested with him.Zara could have withdrawn the funds at the time of the divorce,before Dion left town,but she had no reason for concern and left the funds there for investment purposes.After discovering Dion's wrongdoing,Zara asked Wahid to renegotiate the divorce agreement,but he refused.Which of the following is the most likely result of their dispute if the court follows the decision of the court in Simkin v.Blank,discussed in the text?

Accepted Answer

A) The original divorce agreement will be rescinded,and the parties will be required to renegotiate the agreement because,regardless of whether or not Dion was guilty of fraud,the end result is that Zara did not receive the benefit of her bargain. 
B) The original divorce agreement will be rescinded,and the parties will be required to renegotiate the agreement because Zara and Wahid were mutually mistaken in regard to investing with Dion. 
C) The original divorce agreement will be rescinded,and the parties will be required to renegotiate the agreement because the investment accounts with Dion were a significant basis of the divorce agreement,and Dion's fraud caused termination of that contract. 
D) The original divorce agreement will be enforced only in part because based on their mutual mistake in regard to investing with Dion,the parties will be required to renegotiate the part of the contract involving the investments with Dion. 
E) The original divorce agreement will be enforced. 
A) The original divorce agreement will be rescinded,and the parties will be required to renegotiate the agreement because,regardless of whether or not Dion was guilty of fraud,the end result is that Zara did not receive the benefit of her bargain. 
B) The original divorce agreement will be rescinded,and the parties will be required to renegotiate the agreement because Zara and Wahid were mutually mistaken in regard to investing with Dion. 
C) The original divorce agreement will be rescinded,and the parties will be required to renegotiate the agreement because the investment accounts with Dion were a significant basis of the divorce agreement,and Dion's fraud caused termination of that contract. 
D) The original divorce agreement will be enforced only in part because based on their mutual mistake in regard to investing with Dion,the parties will be required to renegotiate the part of the contract involving the investments with Dion. 
E) The original divorce agreement will be enforced.

Question 11

[Cheap Motorcycle] Jack,an unpleasant,disagreeable,business law teacher,notices that a student,Liam,who is past the age of majority,has a nice motorcycle for sale.Liam has struggled through school,is in his last semester,and needs to pass business law in order to graduate.Jack tells Liam that he would like to see Liam pass and,in the next sentence,says that he wants to buy the motorcycle for $100,a price far below the value of the motorcycle.Liam asks if Jack is serious about the price,and Jack replies,"I have the power here! Take it or leave it!" Jack proceeds to draw up a contract for the sale of the motorcycle for $100 which Liam signs.Liam does some research and finds that Jack has had several arrests for driving under the influence in a nearby town.As an act of revenge,Liam tells Jack that unless Jack sells Liam his new Mustang convertible for $50,he will send a letter about the arrests to the school newspaper.Jack reluctantly agrees to the deal.
-What is true if Liam seeks to rescind the contract for the sale of the motorcycle?

Accepted Answer

A) Liam may rescind the contract on grounds of undue influence or on grounds of duress. 
B) Liam may rescind the contract on the ground that although he is past the age of majority,he is still a student. 
C) Liam may rescind the contract on grounds of duress. 
D) Liam may rescind the contract on grounds of fraud or on grounds of duress. 
E) Liam may not rescind the contract. 
A) Liam may rescind the contract on grounds of undue influence or on grounds of duress. 
B) Liam may rescind the contract on the ground that although he is past the age of majority,he is still a student. 
C) Liam may rescind the contract on grounds of duress. 
D) Liam may rescind the contract on grounds of fraud or on grounds of duress. 
E) Liam may not rescind the contract.

Question 12

When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it,a negligent misrepresentation results.

Accepted Answer

A) True 
 B)False

Question 13

Ben says he will sell Catalina a ring that he found in his yard.Ben and Catalina look at the ring and decide that they are not sure what it is,probably just a shiny stone.Catalina pays Ben $10 for the ring.The ring turns out to be a diamond worth much more than $10.Ben wants the ring back,and Catalina refuses.What is the most likely result?

Accepted Answer

A) The ring will be returned to Ben because of equity. 
B) The ring will be returned to Ben because of unilateral mistake. 
C) The ring will be returned to Ben because of mutual mistake. 
D) The ring will remain with Catalina unless Ben can establish that he was negligent in not recognizing the ring's true value. 
E) The ring will remain with Catalina because the parties contracted on the assumption that they did not know the value of the ring. 
A) The ring will be returned to Ben because of equity. 
B) The ring will be returned to Ben because of unilateral mistake. 
C) The ring will be returned to Ben because of mutual mistake. 
D) The ring will remain with Catalina unless Ben can establish that he was negligent in not recognizing the ring's true value. 
E) The ring will remain with Catalina because the parties contracted on the assumption that they did not know the value of the ring.

Question 14

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

Accepted Answer

A) He will be able to rescind the agreement because Eric was guilty of fraudulent misrepresentation. 
B) He will not be able to rescind the contract because Eric did not know the ring was a fake when the initial agreement was made. 
C) He will not be able to rescind the contract because Eric did not make an express false statement regarding the ring. 
D) He will not be able to rescind the contract unless he can prove that Eric was at least negligent in not realizing the ring was a fake when the initial agreement was made. 
E) He will be able to rescind the agreement because Eric was guilty of duress. 
A) He will be able to rescind the agreement because Eric was guilty of fraudulent misrepresentation. 
B) He will not be able to rescind the contract because Eric did not know the ring was a fake when the initial agreement was made. 
C) He will not be able to rescind the contract because Eric did not make an express false statement regarding the ring. 
D) He will not be able to rescind the contract unless he can prove that Eric was at least negligent in not realizing the ring was a fake when the initial agreement was made. 
E) He will be able to rescind the agreement because Eric was guilty of duress.

Question 15

As described in the text,which statement is true regarding consumers and Japanese law?

Accepted Answer

A) The Civil Code has more lax requirements regarding fraud than the country's Consumer Contracts law. 
B) In order to encourage economic advancement and international investment,the goal is to form the law so that in litigation consumers are at a distinct disadvantage in comparison to businesses. 
C) Japanese law does not recognize rights of consumers as the buyer must beware. 
D) A special Consumer Contracts Law was developed to place consumers and businesses on a more equal footing in transactions. 
E) The goal in regard to consumers is to form the law so that in litigation businesses are at a distinct disadvantage in regard to consumers. 
A) The Civil Code has more lax requirements regarding fraud than the country's Consumer Contracts law. 
B) In order to encourage economic advancement and international investment,the goal is to form the law so that in litigation consumers are at a distinct disadvantage in comparison to businesses. 
C) Japanese law does not recognize rights of consumers as the buyer must beware. 
D) A special Consumer Contracts Law was developed to place consumers and businesses on a more equal footing in transactions. 
E) The goal in regard to consumers is to form the law so that in litigation businesses are at a distinct disadvantage in regard to consumers.

Question 16

Which of the following is found when one party was forced into an agreement by the wrongful act of another?

Accepted Answer

A) Duress 
B) Negligence 
C) Browbeating 
D) Coercion 
E) Fraud 
A) Duress 
B) Negligence 
C) Browbeating 
D) Coercion 
E) Fraud

Question 17

For fraudulent misrepresentation to be the basis for a contract rescission,the statement of fact must be an actual assertion.

Accepted Answer

A) True 
 B)False

Question 18

If both parties are mistaken about a material fact,the mutual mistake does not void the contract.

Accepted Answer

A) True 
 B)False

Question 19

For a valid contract,courts insist on a .

Accepted Answer

A) contractual meeting. 
B) mutual meeting. 
C) meeting of the minds. 
D) meeting of the parties. 
E) meeting of assent. 
A) contractual meeting. 
B) mutual meeting. 
C) meeting of the minds. 
D) meeting of the parties. 
E) meeting of assent.

Question 20

Threatening physical harm or extortion to gain consent to a contract is classified as undue influence.

Accepted Answer

A) True 
 B)False

Exam 17: Legal Assent

Which is the correct legal term,if any,for Eric's action in regard to running back the odometer?

In which of the following examples would a court be least likely to find that nondisclosure has the same legal effect as an actual false assertion?

When a person who makes a misrepresentation has no knowledge about the falsity of the claim,it is said that the person lacked ________.

The result of an error by one party about a material fact is a[n] ________ mistake.

Although there are some exceptions,a[n] ________ mistake does not generally void a contract.

involves a promise to buy or sell that the courts will require the parties to obey.

The rules about legal assent were developed to make business transactions smoother and more dependable.

Which of the following refers to an intentional failure to provide pertinent information about a projected contract?

When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it,a negligent misrepresentation results.

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

As described in the text,which statement is true regarding consumers and Japanese law?

Which of the following is found when one party was forced into an agreement by the wrongful act of another?

For fraudulent misrepresentation to be the basis for a contract rescission,the statement of fact must be an actual assertion.

If both parties are mistaken about a material fact,the mutual mistake does not void the contract.

For a valid contract,courts insist on a .

Threatening physical harm or extortion to gain consent to a contract is classified as undue influence.

An Introduction to Dynamic Business Law

Business Ethics

The Uslegal System

Alternative Dispute Resolution

Constitutional Principles

International and Comparative Law

Crime and the Business Community

Tort Law

Negligence and Strict Liability

Product Liability

Liability of Accountants and Other Professionals

Intellectual Property

Introduction to Contracts

Agreement

Consideration

Capacity and Legality

Contracts in Writing

Third-Party Rights to Contracts

Discharge and Remedies

Introduction to Sales and Lease Contracts

Title,risk of Loss,and Insurable Interest

Performance and Obligations Under Sales and Leases

Remedies for Breach of Sales and Lease Contracts

Warranties

Negotiable Instruments: Negotiability and Transferability

Negotiation, holder in Due Course, and Defenses

Liability, defenses, and Discharge

Checks and Electronic Fund Transfers

Secured Transactions

Other Creditors Remedies and Suretyship

Bankruptcy and Reorganization

Agency Formation and Duties

Liability to Third Parties and Termination

Forms of Business Organization

Partnerships: Nature, formation, and Operation

Partnerships: Termination and Limited Partnerships

Corporations: Formation and Financing

Corporations: Directors, officers, and Shareholders

Corporations: Mergers, consolidations, terminations

Corporations: Securities and Investor Protection

Employment and Labor Law

Employment Discrimination

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

The Nature of Property, personal Property, and Bailments

Real Property

Landlord-Tenant Law

Insurance Law

Wills and Trusts

Filters