BLaw chapter 13

A​ _____ mistake of value exists if both parties know the object of the contract but are mistaken as to its value. A. mutual B. conjectural C. culpable D. hypothetical E. unilateral

A

Fraud in the inception is also known as fraud in the​ _____. A. factum B. deducement C. procurement D. pablum E. inducement

A

If a seller contracts to sell a painting that he believes is a​ child's painting but it turns out to be an undiscovered​ Picasso, also unbeknownst to the buyer at the time of​ purchase, then​ _______. A. this mutual mistake of value does not excuse the seller from the contract B. this mutual mistake of value would excuse the seller from the contract C. the contract can be disavowed D. the contract is void E. the contract can be rescinded

A

What is the legal effect of a mutual mistake of​ value? A. the contract remains enforceable by either party B. the contract may be enforced by the​ offeree, but not by the offeror C. the contract may be enforced by the​ offeror, but not by the offeree D. the same as the legal effect of a mutual mistake of material fact E. the contract is not legally enforceable

A

Which of the following is an INCORRECT statement regarding undue​ influence? A. Undue influence occurs when the servient party unduly persuades the dominant party to enter into a contract. B. For undue influence to​ occur, the persuasion by the wrongdoer must overcome the free will of the innocent party. C. If there is a confidential relationship between​ persons, any contract made by the servient party that benefits the dominant party is presumed to be entered into under undue influence. D. Undue influence is an equitable doctrine E. A court may permit the rescission of a contract based on undue influence.

A

​_____ occurs when one party threatens to do some wrongful act unless the other party enters into a contract. A. Duress B. Fraud in the inducement C. Economic battery D. Trade dress E. Fraud in the inception

A

Cindy offers to sell her new car to Nori for​ $500. Nori pays her the​ $500, but discovers when she goes to pick up the car that it is not the Mercedes she thought it​ was, but rather a junker that Cindy had just purchased. Cindy thought Nori knew she had purchased the junker last week. This is an example of​ _______. A. fraud in the inception B. mutual mistake C. fraud in the inducement D. unilateral mistake E. silence by misrepresentation

B

Fraud by​ _____ occurs when one party takes specific action to conceal a material fact from another party. A. factum B. concealment C. inducement D. procurement E. inception

B

If a buyer contracts to purchase a painting that he secretly believes to be a previously undiscovered​ Picasso, when in fact it is a​ child's painting,​ _______. A. this unilateral mistake would excuse the buyer from the contract B. this unilateral mistake does not excuse the buyer from the contract C. the contract is void D. the contract can be disavowed E. the contract can be rescinded

B

Kimmy offers to sell her car to Kat for​ $10,000. She tells Kat it is a white 2017 Ford Explorer with only​ 10,000 miles on it. Kat happily buys the car because of the low​ mileage, but learns that the car actually had​ 110,000 miles on it. Kimmy believed the car only had​ 10,000 miles on it because she purchased it 6 months ago and the previous owner told her it only had​ 9,6000 miles on it. This is an example of​ _______. A. duress B. innocent misrepresentation C. fraud in the inception D. undue influence E. fraud in the inducement

B

​Sheila, a licensed​ nurse, is hired to care for Mr. Johnson on a daily​ basis, and Mr. Johnson relies on​ Sheila's care. Sheila works for Mr. Johnson for two years before Mr. Johnson passes away. It is later discovered that Mr. Johnson had executed a written contract with Sheila three months before he​ died, deeding a valuable piece of real estate to Sheila. If no undue influence is​ shown, then the contract is​ _______. A. invalid due to innocent misrepresentation B. valid C. invalid due to misrepresentation of law D. invalid due to fraud by concealment E. invalid due to duress

B

Scienter means​ _____. A. ordinary negligence B. strict liability C. guilty mind D. scientific expert​ (for the purpose of qualifying an expert witness to testify at​ trial) E. sensory awareness

C

What is the legal effect of fraud in the​ inducement? A. the contract is voidable by the party who made the fraudulent​ statement, since fraud in the inducement is an innocent misrepresentation B. the contract is still enforceable C. the contract is voidable by the innocent party D. the victim may sue the party who made the fraudulent statement for civil damages in criminal court E. the contract is void

C

​_____ is a situation in which one person takes advantage of another​ person's mental,​ emotional, or physical weakness and unduly persuades that person to enter into a contract. A. Duress B. Fraud in the inception C. Undue influence D. Fraud in the inducement E. Economic battery

C

A party may rescind a contract if there has been a​ _____ mistake of a​ _____ fact. A. ​mutual; non-material B. ​unilateral; hypothetical C. ​unilateral; non-material D. ​mutual; material E. ​mutual; hypothetical

D

Fraud in the​ _____ occurs if a person is deceived as to the nature of his or her act and does not know what he or she is signing. A. deduction B. perception C. conception D. inception E. deception

D

Johnny tells Jamal that his Ford Explorer only has​ 10,000 miles on it when in fact he knows it has​ 110,000 miles on it. Jamal buys the Ford Explorer for​ $8,000 more than he would have paid for it had he known it really had​ 110,000 miles on it. This is an example of​ _______. A. silence by misrepresentation B. misrepresentation of an immaterial fact C. misrepresentation of law D. misrepresentation of a material fact E. fraud in the inception

D

Joni tells Geneva that her car only has​ 10,000 miles on​ it, when it actually has​ 110,000 miles on it. Geneva pays​ $8,000 more than she would have thinking it had low mileage. Joni believed the car only had​ 10,000 miles on it because she only bought it a few months ago and it is in great condition. This would be​ _______. A. duress B. undue influence C. fraud in the inception D. innocent misrepresentation E. fraud in the inducement

D

Voluntary​ _____ by the parties is necessary to create an enforceable​ _____. A. ​dissent; gift B. ​assent; gift C. ​dissent; contract D. ​assent; contract E. ​dissuasion; contract

D

Which of the following is an INCORRECT statement regarding silence as​ misrepresentation? A. Silence can constitute misrepresentation if federal and state statutes require disclosure. B. Silence can constitute misrepresentation if​ non-disclosure would cause death. C. Silence can constitute misrepresentation if​ non-disclosure would cause bodily injury. D. ​Generally, each party to a contract owes a duty to disclose all the facts to the other party. E. Silence can constitute misrepresentation if there is a fiduciary relationship between the contracting parties.

D

​A(n) _____ fact is a fact that is important to the subject matter of a contract. A. ​non-material B. stipulated C. hypothetical D. material E. assumed

D

​Usually, misrepresentation of​ _____ is not actionable as fraud. A. a significant fact B. a salient fact C. a material fact D. law E. an essential fact

D

If there has been a mutual mistake of material​ fact, _____. A. the contract is void as to​ purpose, but not as to subject matter B. the contract is based on fraud C. the contract is void as to subject​ matter, but not as to purpose D. the contract is void E. the contract may be rescinded

E

The threat to commit extortion unless someone enters into a contract constitutes​ _____. A. trade dress B. fraud in the inducement C. fraud in the inception D. economic battery E. duress

E

​Sheila, a licensed​ nurse, is hired to care for Mr. Johnson on a daily​ basis, and Mr. Johnson relies on​ Sheila's care. Sheila works for Mr. Johnson for two years before Mr. Johnson passes away. It is later discovered that Mr. Johnson had executed a written contract with Sheila three months before he​ died, deeding a valuable piece of real estate to Sheila. If it is shown that Sheila has used her dominant and fiduciary position to unduly influence Mr. Johnson to enter into this​ contract, then the contract is invalid under the theory of​ _______. A. innocent misrepresentation B. duress C. misrepresentation of law D. fraud by concealment E. undue influence

E