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Genuineness of Assent-Fall2011

Page history last edited by abogado 8 years, 8 months ago

QUIZZES-LAW1-FALL2011

 

 

Chapter 14 - Genuineness of Assent

 

MULTIPLE CHOICE QUESTIONS

1. Owen, a famous chef, sells to Pat a restaurant that Owen closed years

ago. Pat discovers in the restaurant a collection of Owen’s recipes, which

are considered valuable. In a suit to obtain the recipes, Owen will likely

a. not prevail because he should have known that the recipes were in

the restaurant.

b. not prevail because the sale of a restaurant includes everything in

it.

c. prevail because there was no mutual assent.

d. prevail because the sale of a restaurant includes nothing in it. 

 

Fact Pattern 14-B1 (Questions 2–3 apply)

Gert contracts to sell two tracts of land to Hank. Both parties believe that the

two tracts are adjacent, but in fact they are not. Gert is still willing to sell the

land, but under these circumstances the deal would adversely affect Hank.

 

2. Refer to Fact Pattern 14-B1. The parties’ belief about the adjacency of the

property is

a. a bilateral mistake.

b. a fraudulent misrepresentation.

c. a unilateral mistake.

d. unconscionable. 

 

3. Refer to Fact Pattern 14-B1. Because of the parties’ belief about the

adjacency of the property, their contract is

a. unavoidable.

b. unconscionable.

c. unenforceable.

d. voidable. 

 

4. Hillside Homes, Inc., and Ideal Builders, Inc., enter into a construction

contract that includes six pages of detailed calculations. Later Hillside,

whose project manager compiled the figures, discovers that some

numbers were multiplied incorrectly, but Ideal refuses to make changes.

A court would most likely

a. allow the parties to rescind the contract.

b. award damages to A for the mistakes.

c. award damages to B for the mistakes.

d. enforce the contract without requiring changes. 

 

5. At an auction for the first time, Max bids on an object, believing that the

auctioneer requested an amount less than the price actually asked. Max

is

a. liable on the bid.

b. not liable on the bid because Max misunderstood the auctioneer.

c. not liable on the bid because the auctioneer misstated the price.

d. not liable on the bid because the object is probably overpriced. 

 

6. Harold believes his old baseball bat has little value, but Murray is convinced

it is a valuable collector’s item. Harold sells it to Murray for $100

before learning it is worth $1,000. The contract

a. may be rescinded because a mutual mistake was made.

b. may serve as the basis for a court order to Murray to return the

bat.

c. may be rescinded because Murray used superior knowledge about

the bat to take advantage of Harold.

d. will not be canceled because the mistake relates to the value of the

item. 

 

Fact Pattern 14-B2 (Questions 7-8 apply)

Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but

mistakenly transposes some of the digits in the price so that $15,400 appears in

the offer as $14,500. Opal accepts the written offer.

 

7. Refer to Fact Pattern 14-B2. Opal’s best argument in favor of

enforcement of the contract is that

a. a bilateral mistake does not afford relief from a contract.

b. a mistake of value does not afford relief from a contract.

c. a unilateral mistake does not afford relief from a contract.

d. the price was below the prices of comparable devices. 

 

8. Refer to Fact Pattern 14-B2. Nano’s best defense against enforcement of

the contract is that Opal knew

a. a bilateral mistake supports the cancellation of a contract.

b. a mistake of value supports the cancellation of a contract.

c. a unilateral mistake supports the cancellation of a contract.

d. the price was below the prices of comparable devices. 

 

9. Rally offers to sell Sophie, who is seventeen years of age, a car about

which Rally intentionally misrepresents several material facts. In

reliance on the misrepresentations, Sophie buys the car. To prove fraud

in this transaction, Sophie would have to show that

a. Rally intentionally deceived Sophie.

b. Rally made statements that were obviously exaggerated.

c. Sophie does not know anything about cars.

d. Sophie is under eighteen years of age. 

 

10. Joy induces Kelly to enter into a contract for the purchase of a

condominium about which Joy knowingly misrepresents a number of

material features. When Kelly discovers the truth, Kelly can

a. enforce the contract and seek damages.

b. enforce the contract but not seek damages.

c. neither enforce the contract nor seek damages.

d. seek damages but not enforce the contract. 

 

11. Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides

“like the wind.” Kurt’s statement is

a. duress.

b. fraud.

c. puffery.

d. undue influence. 

 

12. Yvon convinces Zack, who has no athletic ability, that Zack has

considerable talent and induces Zack to pay Yvon $10,000 for golf

lessons. When Zack realizes the truth, he files a suit against Yvon. Zack

is most likely to recover on the basis of

a. duress.

b. misrepresentation.

c. unconscionability.

d. none of the choices. 

 

13. Roc buys a farm from Steve, who claims that it would be a prime site for

a housing subdivision. Roc later learns that the law does not permit the

land to be used for housing. Roc may

a. not rescind the contract.

b. rescind the contract only if Roc did not know the law before the

deal.

c. rescind the contract only if Steve knew about the law before the

deal.

d. rescind the contract only if the law is not common knowledge. 

 

14. Ben sells a sport utility vehicle to Cody without disclosing that the

odometer, which reads 40,000 miles, was disconnected 80,000 miles ago.

Ben is liable for

a. duress.

b. fraud.

c. puffery.

d. undue influence. 

 

15. Dale files a suit against Eve, alleging her fraud in entering into a contract

with him. Proof of an injury is required

a. to recover damages.

b. to rescind the contract.

c. to undo Eve’s influence.

d. under no circumstances. 

 

16. Lacy uses undue influence to induce Mina to sign a contract to invest

her National Education Fund student loan money in Overseas Bank.

Mina may

a. avoid the contract.

b. do nothing after Mina signs the contract.

c. recover from National for a failure to monitor Mina’s money.

d. recover from Overseas for a failure to undo Lacy’s influence. 

 

17. Dora, an accountant, uses undue influence to induce her client Emily to

invest in Fine Gems, Ltd., a business with little potential. When Emily

learns the truth, she can

a. do nothing.

b. enforce the contract but not rescind it.

c. enforce the contract or rescind it.

d. rescind the contract but not enforce it. 

 

18. Mary induces Nick to sign a contract by placing a gun to Nick’s head.

The contract is void

a. only if the contract has an illegal purpose.

b. only if the terms are unfair to Nick.

c. under any circumstances.

d. under no circumstances. 

 

Fact Pattern 14-B3 (Questions 19-20 apply)

Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc.

When Pete refuses to perform, Ripe Produce files a suit to enforce the contract.

 

19. Refer to Fact Pattern 14-B3. To defend successfully on the ground of unconscionability,

Pete must show that enforcement of the contract would

be

a. economically meaningless.

b. legally worthless.

c. manifestly unfair or oppressive.

d. undeniably valuable. 

 

20. Refer to Fact Pattern 14-B3. If Pete and Ripe Produce are in a state that

does not recognize the doctrine of unconscionability, to defend successfully

against enforcement of the contract on similar grounds, Pete might

rely on traditional notions of

a. fraud.

b. materiality.

c. mistake.

d. unconscionability.

 

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