Ch 13
Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that a. Dick intentionally deceived Ernie. b. Ernie justifiably relied on Dick's misrepresentations. c. Dick misrepresented material facts. d. Ernie is under twenty-one.
Ernie is under twenty-one.
State University (SU) provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at SU. This requirement is a. a condition. b. a discharge by performance. c. an accord and satisfaction. d. a material alteration.
a condition
Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony a. sign a receipt. b. shake hands and go their separate ways. c. exchange the car for the $3,000. d. agree to sign a bill of sale.
exchange the car for $3,000
Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of a. none of the choices. b. mistake. c. undue influence. d. fraud.
fraud
Berry enters into a contract with Clyde for a guided tour of Deep Canyon. Clyde represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Berry is most likely a victim of a. mistake. b. undue influence. c. unconscionability. d. fraud.
fraud
Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is a. not required to pay due to the bilateral mistake. b. not required to pay due to the unilateral mistake. c. required to pay because he assumed the risk the cattle might die. d. entitled to recover the value of the lost cattle.
not required to pay due to the bilateral mistake.
In selling 300 acres of rural land to Organic Farms, Peyton tells the buyer that the land "will be worth twice as much by next year." This is a. fraud. b. mistake. c. adhesion. d. opinion.
opinion
Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to a. undo Eve's influence. b. recover damages. c. rescind the contract. d. punish the defendant.
recover damages
Moe threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may a. do nothing once she has agreed to pay. b. recover from the local police for their failure to protect her store. c. rescind the contract or refuse to comply with its terms. d. recover from her insurer for the cost.
rescind the contract or refuse to comply with its terms
Gene, an accountant, convinces his client Hazel to sign a contract to invest her savings in 2Gether, a nonexistent social-networking Web site. There is clear and convincing evidence that Hazel did not act out of her free will. This is a. fraud. b. undue influence. c. duress. d. mistake.
undue influence