Question 1

If the tort suit is an indirect method for enforcing a contract, infants are liable for their torts.

Accepted Answer

A) True 
 B)False  False

Question 2

Identify the correct statement in proving fraudulent misrepresentation.

Accepted Answer

A)  Concealment is a more passive type of nondisclosure. 
B)  Nondisclosure of a fact operates as a misrepresentation under all circumstances. 
C)  The act of concealment should be direct. 
D)  Concealment may consist of diverting the other party from gaining the necessary knowledge. 
E)  Sales puffery is considered a fact. 
A)  Concealment is a more passive type of nondisclosure. 
B)  Nondisclosure of a fact operates as a misrepresentation under all circumstances. 
C)  The act of concealment should be direct. 
D)  Concealment may consist of diverting the other party from gaining the necessary knowledge. 
E)  Sales puffery is considered a fact. D

Question 3

An infant will lose the power to avoid a contract if the rights of third parties intervene.

Accepted Answer

A) True 
 B)False  True

Question 4

If the misrepresentation is fraudulent, the victim can avoid the contract, no matter the significance of the misrepresentation.

Accepted Answer

A) True 
 B)False

Question 5

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

Accepted Answer

A) True 
 B)False

Question 6

A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true about undue influence?

Accepted Answer

A)  It is a harsher form of duress. 
B)  The unfairness does not lie in any misrepresentation. 
C)  Usually the fact pattern involves the victim receiving advice from most people except the persuader. 
D)  A contract made under undue influence stands void. 
E)  The perpetrator threatens the victim to assent to the contract. 
A)  It is a harsher form of duress. 
B)  The unfairness does not lie in any misrepresentation. 
C)  Usually the fact pattern involves the victim receiving advice from most people except the persuader. 
D)  A contract made under undue influence stands void. 
E)  The perpetrator threatens the victim to assent to the contract.

Question 8

A contract induced by improper threats or undue influence is void.

Accepted Answer

A) True 
 B)False

Question 9

If a statement of fact is made false by later events, it must be disclosed as false.

Accepted Answer

A) True 
 B)False

Question 10

In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?

Accepted Answer

A)  There was a mistake on part of Young who did not have the authority to order the equipment. 
B)  The contract was made intentionally misrepresenting the facts. 
C)  The mistake was mutual, relating to the failure of communication. 
D)  There was a misstatement of fact by Konic. 
E)  There was a fraudulent misrepresentation. 
A)  There was a mistake on part of Young who did not have the authority to order the equipment. 
B)  The contract was made intentionally misrepresenting the facts. 
C)  The mistake was mutual, relating to the failure of communication. 
D)  There was a misstatement of fact by Konic. 
E)  There was a fraudulent misrepresentation.

Question 11

Which of the following is true of fraudulent misrepresentation?

Accepted Answer

A)  A fraudulent misrepresentation is a crime. 
B)  Fraudulent misrepresentation is a misstatement of facts that is unintentionally made and justifiably relied upon. 
C)  If a statement of fact is made false by later events, it must be disclosed as false. 
D)  A half-truth cannot amount to misrepresentation. 
E)  A typist's unnoticed error in a letter cannot amount to misrepresentation. 
A)  A fraudulent misrepresentation is a crime. 
B)  Fraudulent misrepresentation is a misstatement of facts that is unintentionally made and justifiably relied upon. 
C)  If a statement of fact is made false by later events, it must be disclosed as false. 
D)  A half-truth cannot amount to misrepresentation. 
E)  A typist's unnoticed error in a letter cannot amount to misrepresentation.

Question 12

What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

Accepted Answer

An agreement is enforceable if the parti

Question 13

A contract made by a person under guardianship is voidable.

Accepted Answer

A) True 
 B)False

Question 14

A fraudulent misrepresentation is a criminal wrong.

Accepted Answer

A) True 
 B)False

Question 15

In proving fraud, which of the following is true in case of reliance by the victim?

Accepted Answer

A)  The reliance need not be solely on the false assertion. 
B)  The defendant can win a case by demonstrating that the plaintiff would have assented to the contract even without misrepresentation. 
C)  If the victim fails to read documents which give him the true facts, he can complain that he relied on contrary statements. 
D)  The rule of reliance applies to statements about the occurrence of events in the past, present, and future. 
E)  If the statement is one that concerns matters peculiarly within the person's purview, he would be held to have justifiably relied on the other party's false assertion. 
A)  The reliance need not be solely on the false assertion. 
B)  The defendant can win a case by demonstrating that the plaintiff would have assented to the contract even without misrepresentation. 
C)  If the victim fails to read documents which give him the true facts, he can complain that he relied on contrary statements. 
D)  The rule of reliance applies to statements about the occurrence of events in the past, present, and future. 
E)  If the statement is one that concerns matters peculiarly within the person's purview, he would be held to have justifiably relied on the other party's false assertion.

Question 16

Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?

Accepted Answer

A)  The contract did not develop Vokes' dancing abilities. 
B)  The contract did not develop Vokes' dance aptitude. 
C)  The contract led to Vokes having difficulty in hearing the musical beat. 
D)  There was an assertion of intentions. 
E)  The contract was a misrepresentation of assertion of opinion. 
A)  The contract did not develop Vokes' dancing abilities. 
B)  The contract did not develop Vokes' dance aptitude. 
C)  The contract led to Vokes having difficulty in hearing the musical beat. 
D)  There was an assertion of intentions. 
E)  The contract was a misrepresentation of assertion of opinion.

Question 17

In duress by threat, _____.

Accepted Answer

A)  the threat must be proper 
B)  there must be a reasonable alternative 
C)  the test for inducement is objective 
D)  the contract is rendered voidable 
E)  the test for inducement is based on what a more reasonable person might have feared 
A)  the threat must be proper 
B)  there must be a reasonable alternative 
C)  the test for inducement is objective 
D)  the contract is rendered voidable 
E)  the test for inducement is based on what a more reasonable person might have feared

Question 18

Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

Accepted Answer

A) True 
 B)False

Question 19

With reference to assertions of intention, which of the following is NOT true?

Accepted Answer

A)  Usually, assertions of intention are not considered facts. 
B)  The right to misstate intentions is useful chiefly in the acquisition of business. 
C)  To be a misrepresentation that will permit rescission, an assertion of intention must be false at the time made. 
D)  To render a contract voidable, the false assertion of intention must be harmful in some way to other interests of the recipient. 
E)  The law allows considerable leeway in the honesty of assertions of intention. 
A)  Usually, assertions of intention are not considered facts. 
B)  The right to misstate intentions is useful chiefly in the acquisition of business. 
C)  To be a misrepresentation that will permit rescission, an assertion of intention must be false at the time made. 
D)  To render a contract voidable, the false assertion of intention must be harmful in some way to other interests of the recipient. 
E)  The law allows considerable leeway in the honesty of assertions of intention.

Question 20

An) _____ is one that would be likely to induce a reasonable person to manifest his assent.

Accepted Answer

A)  innocent misrepresentation 
B)  rescission 
C)  duress 
D)  misstatement of fact 
E)  material misrepresentation 
A)  innocent misrepresentation 
B)  rescission 
C)  duress 
D)  misstatement of fact 
E)  material misrepresentation

Exam 10: Real Assent

If the tort suit is an indirect method for enforcing a contract, infants are liable for their torts.

Identify the correct statement in proving fraudulent misrepresentation.

An infant will lose the power to avoid a contract if the rights of third parties intervene.

If the misrepresentation is fraudulent, the victim can avoid the contract, no matter the significance of the misrepresentation.

In the case of mutual mistake, relief may be granted if the mistake concerns a basic assumption on which the contract was made.

A defendant can win a case by solely demonstrating that the plaintiff would have assented to the contract even without the misrepresentation.

Which of the following is true about undue influence?

A contract induced by improper threats or undue influence is void.

If a statement of fact is made false by later events, it must be disclosed as false.

In Konic International Corporation, v. Spokane Computer Services, Inc., which of the following led to the final decision by the court?

Which of the following is true of fraudulent misrepresentation?

What are the requirements for a real assent? What are the various remedies available in case an agreement is not made under real assent?

A contract made by a person under guardianship is voidable.

A fraudulent misrepresentation is a criminal wrong.

In proving fraud, which of the following is true in case of reliance by the victim?

Which of the following led to the final decision by the court in the Vokes v. Arthur Murray, Inc. case?

In duress by threat, _____.

Fraud in the execution involves some misrepresentation about the subject of the contract that stimulates assent.

With reference to assertions of intention, which of the following is NOT true?

An) _____ is one that would be likely to induce a reasonable person to manifest his assent.

Introduction to Law and Legal Systems

Corporate Social Responsibility and Business Ethics

Courts and the Legal Process

Constitutional Law and Us Commerce

Administrative Law

Criminal Law

Introduction to Tort Law

Introduction to Contract Law

The Agreement

Consideration

Legality

Form and Meaning

Third-Party Rights

Discharge of Obligations

Remedies

Products Liability

Intellectual Property

Insurance

Relationships Between Principal and Agent

Liability of Principal and Agent; Termination of Agency

Partnerships: General Characteristics and Formation

Partnership Operation and Termination

Hybrid Business Forms

Corporation: General Characteristics and Formation

Legal Aspects of Corporate Finance

Corporate Powers and Management

Securities Regulation

Corporate Expansion, State and Federal Regulation of Foreign Corporations, and Corporate Dissolution

Employment Law

Labor-Management Relations

Consumer Credit Transactions

Secured Transactions and Suretyship

Mortgages and Nonconsensual Liens

Bankruptcy

Introduction to Property: Personal Property and Fixtures

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