BUL 2241 CH 13 quiz

A minor cannot avoid a contract to purchase a car if the: a. ​car has been destroyed. b. ​minor is able to return the car but does not do so. c. ​car has been damaged. d. ​car is used for non-commercial purposes.

minor is able to return the car, but does not do so.

Marquez agrees to buy Dale's pickup truck so he can pull his trailer. Both Marquez and Dale believe that the truck is big enough to do the job. After they complete the deal, Marquez finds that the truck is not strong enough to handle the trailer. The contract between Marquez and Dale can be rescinded because of: a.negligent misrepresentation. b. a mutual mistake. c. a defective acceptance. d. a unilateral mistake.

mutual mistake

A finding of undue influence would most likely not occur in a contract between: a. parent and child.​ b. ​guardian and ward. c. ​attorney and client. d. ​neighbor and neighbor.

neighbor and neighbor

Juan visited a garage sale and found a baseball card collection which he believed was worth over $1,000. He bought the collection for $50.00 from Wanda. Later Juan discovered the collection was essentially worthless and demands his money back from Wanda. Must Wanda refund Jose's money? a. ​Yes, the contract is enforceable because of mutual mistake of fact. b. ​No, the contract is enforceable because Juan was operating under a unilateral mistake and Wanda did not know the value of the cards. c. ​Yes, the contract is enforceable because Juan made a unilateral mistake of fact. d. ​No, the contract is enforceable because of mutual mistake of value.

no, the contract is enforceable because Jose was operating under a unilateral mistake and Wanda did not know the value of the cards.

A minor cannot avoid a contract that has been: a. signed. b. ​processed. c. ​ratified. d. ​disallowed by the court.

ratified

Jane, a widow, just sold a piece of property. She will live off that money during her retirement. Judy dotes on her son, Chris, who asks her to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have formed a binding contract. What is your conclusion? a. ​The contract is voidable based on undue influence. b. ​The contract is voidable based on fraud. c. ​The contract is valid because it was a unilateral mistake. d. ​The contract is voidable based on duress.

the contract is voidable based on the undue influence.

All of the following statements refer to an element of fraud except: a. the defendant desired to obtain a financial benefit. b. ​the defendant intended for the other party to rely on the false statement. c. ​the defendant knew that the statement was false or was recklessly indifferent regarding its truth. d. ​the defendant made a false statement.

the defendant desired to obtain a financial benefit.

The obligation of a cosigner is discharged by: a. the minority status of one of the parties. b. the payment of the debt. c. ​the majority status of one of the parties. d. ​the court's declaration of the contract's provision of necessaries.

the payment of the debt

Sam sells Smith a used car that Sam falsely described as having been driven only 12,000 miles. Fraud has occurred if: a. ​Smith knew that the mileage was more than 12,000 miles. b. ​Smith relied upon Sam's statement. c. ​Sam is a merchant. d. ​Smith bought the car solely because of its color.

​Smith relied upon Sam's statement.

An apparently voluntary agreement may in fact not be voluntary if: a. ​economic duress is present. b. ​all of these. c. ​physical duress is present. d. ​undue influence is present.

​all of these.