Chapter 5: Mutual Assent of the Parties
Bob wants to go to Madrid, so he looks online for a good fare. After looking at several options, he finds a reasonably priced one. However, it's nonrefundable; if he purchases it and later needs to change his plans, he will have to pay a $200 penalty fee plus any applicable faire difference. If Bob buys the airfare, he is entering a(n) ___________ with the airline
adhesion contract
Your supervising attorney has asked you to proofread a consumer installment sales agreement she has prepared for her client, the owner of a sporting goods store in Pasadena, Texas. This neighborhood is populated by recent immigrants from Vietnam. You notice that the interest charged on purchases is stated as 98 percent per annum. What possible issue exist? Choose the best answer
all of these answers are correct: typographical error substantive unconscionability math error
In order to prove economic duress, it must be proven that
all of these choices: financial hardship exists wrongful conduct exists an injured party acts against his or her free will
Methods of destroying mutual assent in a contract include which of the following
all of these choices: fraud duress undue influence
A mistake can occur when
all of these choices: one party is wrong about a fact both parties are wrong about a fact
Misrepresentation is defined as:
an innocent misstatement of fact
The contract's "Remedies" clause says it is enforceable only in the courts of Wisconsin. Why might a Wisconsin court refuse to enforce the contract against a consumer
because it expands the department store's rights while diminishing the consumer's
After purchasing his nonrefundable ticket online, Bob receives an e-mail confirmation that says, "Thank you for booking your Madrid, Illinois, flight with Midwest Airlines." He thought he had bought a ticket to Madrid, Spain. He has a voidable contract because of this mistake
false
Fraud and misrepresentation are the only two methods of destroying mutual assent
false
In a duress case, you do not have to prove coercion
false
Ms. Nguyen visits the store's boating department, looking for a kayak. The sales associate shows her a "Air-Boat" kayak, and Mrs. Kim purchases it on an installment plan. When she takes it home, she discovers that it is an inflatable boat. Her best argument for rescission of her contract with the store is substantive unconscionability
false
Undue influence cases are common in which of the following
fiduciary relationships
Match the terms with their definitions
misrepresentation - an innocent misstatement of fact mutual mistake - incorrect understanding of a material fact to a contract by both parties fiduciary - a person in a position of trust let the buyer beware - the doctrine of caveat emptor fraud - a deliberate misstatement of fact unilateral mistake - incorrect understanding of a material fact to a contract by one party unconscionable - a contract that shocks public sensibilities and is oppressive undue influence - wrongful pressure placed upon a vulnerable person in a confidential relationship duress - wrongful pressure placed upon a party depriving him or her of free will
To determine whether mutual assent exists, the court will apply a(n) _______ standard
objective
Oppressive or overly harsh contracts create ___________ contracts
substantive unconscionable
A method of destroying mutual assent is fraud in the contract
true
A sign in the department store's window states "Easy Credit Available" in Vietnamese and English, and the agreement, which is entirely in English, has a contract interest rate of 8 percent per year. A potential problem of procedural unconscionability exists here
true
Adhesion contracts can sometimes be unconscionable
true
Bob is a college graduate. Despite his education, he is unable to understand the fare's terms and conditions because its language is so complex, and the print is so time. These facts will strengthen his argument that the fare contract is an adhesion contract
true
Mutual assent is a meeting of the minds
true
Procedural unconscionability lacks meaningful choice by one party to a contract
true
There are two types of mistakes: mutual and unilateral
true
Undue influence arises out of a confidential relationship
true
If the contract says the store is located in "Pasadena, Texes," will it be enforceable
yes, if mutual assent can be shown