BLAW CH 13 T/F

Generally, if there is a good faith dispute over a matter, a person's threat to file a lawsuit to resolve that dispute is considered improper

False

Ratification ends the right to rescind a contract

True

A party who has the right to rescind a contract may do so at any time

False

A famous journalist predicted the result of an NBA match between the LA Groves and the LA Phantoms in favor of the Phantoms, based on the present form of Groves. Accordingly, Mark placed a huge bet on the Phantoms and lost heavily. This is an example of misrepresentation of material fact of a contract

False

The legal term for innocent misrepresentation is "scienter"

False

Threats to institute legal actions cannot be considered improper threats that constitute duress

False

While economic pressure may amount to undue influence, it cannot constitute duress

False

A contract may be voidable even if the person making the misrepresentation believes in a good faith that what he/she says is true

True

A party injured by fraud in a contract for the sale of goods can both rescind the contract and sue for damages

True

Concealment involves the active hiding of the fact, while nondisclosure is the failure to volunteer information

True

In order for unilateral mistake to make a contract voidable, either the non mistaken party must have caused or had reason to know of the mistake, or enforcement of the contract must be unconscionable

True

Mutual mistake is more likely to make a contract voidable than is unilateral mistake

True

The threat to institute a criminal prosecution against another party in order to force that party into a contract is almost always duress

True

Undue influence cases often involve a relationship of trust and confidence between the contraction parties

True

When one of the parties offers a disproportionally small amount of money in settlement of a debt and refuses to pay more, it is a form of economic duress

True