Question 1

When duress is at issue,the needed for legal consent has been removed by the specifics of the threat.

Accepted Answer

A)The injured party makes the case for duress by demonstrating that the threat left
no reasonable alternatives and that the free will necessary for legal consent was removed by the specifics of the threat.
B)The injured party makes the case for duress by demonstrating that the threat left no reasonable alternatives and that the free will necessary for legal consent was removed by the specifics of the threat.
C)The injured party makes the case for duress by demonstrating that the threat left no reasonable alternatives and that the free will necessary for legal consent was removed by the specifics of the threat.
D)The injured party makes the case for duress by demonstrating that the threat left no reasonable alternatives and that the free will necessary for legal consent was removed by the specifics of the threat.
E)The injured party makes the case for duress by demonstrating that the threat left no reasonable alternatives and that the free will necessary for legal consent was removed by the specifics of the threat.

Question 2

Monica and Omar talk about the fact that a new teacher is being hired for business law at their school.Omar mentions that he does not yet have a book,and Monica agreed to sell Omar a used business law book for $30 for the upcoming semester.When the new semester begins,the new business law teacher announces that a new custom business law text will be used that is only available in the campus bookstore.Omar wants a refund.Which of the following is Monica's best defense?

Accepted Answer

A)For a mutual mistake to interfere with legal consent,there must be an adverse
effect on a party who did not agree to bear the risk of mistake at the time of the agreement.
B)For a mutual mistake to interfere with legal consent,there must be an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.
C)For a mutual mistake to interfere with legal consent,there must be an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.
D)For a mutual mistake to interfere with legal consent,there must be an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.

Question 3

Which of the following is found when one party was forced into an agreement by the wrongful act of another?

Accepted Answer

A)Duress occurs when one party is forced into the agreement by the wrongful act of
another.
B)Duress occurs when one party is forced into the agreement by the wrongful act of another.
C)Duress occurs when one party is forced into the agreement by the wrongful act of another.
D)Duress occurs when one party is forced into the agreement by the wrongful act of another.
E)Duress occurs when one party is forced into the agreement by the wrongful act of another.

Question 4

Which of the following was the result in the case in the text,Fantastic Sams Salons Corp.v.PSTEVO,LLC and Jeremy Baker,in which the court considered PSTEVO's counterclaim for fraudulent misrepresentation with regard to a franchise agreement?

Accepted Answer

A)The court dismissed defendants' fraudulent misrepresentation counterclaim because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.
B)The court dismissed defendants' fraudulent misrepresentation counterclaim because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.
C)The court dismissed defendants' fraudulent misrepresentation counterclaim because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.
D)The court dismissed defendants' fraudulent misrepresentation counterclaim because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.
E)The court dismissed defendants' fraudulent misrepresentation counterclaim because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.

Question 5

Which of the following occurs when a party threatens to file a criminal lawsuit unless consent is given to the terms of a contract?

Accepted Answer

A)Duress occurs when one party threatens to file a criminal lawsuit unless consent
is given to the terms of a contract.
B)Duress occurs when one party threatens to file a criminal lawsuit unless consent is given to the terms of a contract.
C)Duress occurs when one party threatens to file a criminal lawsuit unless consent is given to the terms of a contract.
D)Duress occurs when one party threatens to file a criminal lawsuit unless consent is given to the terms of a contract.
E)Duress occurs when one party threatens to file a criminal lawsuit unless consent is given to the terms of a contract.

Question 6

Which of the following is involved in a situation in which a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than was specified in the original agreement?

Accepted Answer

A)Economic duress occurs when one party threatens the other's economic interests.
For instance,a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than specified in the original agreement.
B)Economic duress occurs when one party threatens the other's economic interests.For instance,a person refuses to perform according to a contract unless the other person either signs another contract with the one making the threat or pays that person a higher price than specified in the original agreement.

Question 7

Which statement would be the result if Jen attempts to rescind the contract and recover damages only on the basis of the neighbor's objection to a pig farm?

Accepted Answer

A)Because courts are hesitant to interfere when one of the parties has a correct understanding of the material facts of the agreement,a unilateral mistake does not generally void a contract.

Question 8

Which of the following occurs in Australia whenever an illegitimate threat is made to hold on to goods unless a payment is made or an agreement is entered into?

Accepted Answer

A)Australia recognizes a special category called duress of goods,which occurs
whenever one party makes an illegitimate threat to hold goods unless another party makes payment or enters into an agreement.
B)Australia recognizes a special category called duress of goods,which occurs whenever one party makes an illegitimate threat to hold goods unless another party makes payment or enters into an agreement.
C)Australia recognizes a special category called duress of goods,which occurs whenever one party makes an illegitimate threat to hold goods unless another party makes payment or enters into an agreement.
D)Australia recognizes a special category called duress of goods,which occurs whenever one party makes an illegitimate threat to hold goods unless another party makes payment or enters into an agreement.
E)Australia recognizes a special category called duress of goods,which occurs whenever one party makes an illegitimate threat to hold goods unless another party makes payment or enters into an agreement.

Question 9

[Scheming 'Friends'] Richard wants to rent a basement apartment in Eric's home.Richard threatens to tell Eric's parents that Eric had been arrested for illegally smoking marijuana unless Eric rents the apartment to him for $100 per month.The information regarding the arrest is true. )Eric reluctantly agrees to rent the apartment to Richard for $100 per month.Richard also wants to buy Eric's car.Eric runs back the odometer on the car before Richard looks at it.Richard is impressed by the low mileage and agrees to buy the car.Eric offers to sell Richard a ring for Richard's fiancée.Eric tells Richard that the ring is a diamond and believes that to be true.After the deal is made,however,a jeweler friend of Eric informs him that the ring is a fake.When Richard shows up with the money,Eric says nothing.He just hands Richard the ring and takes the money.Later,Richard finds out that the odometer was run backwards from another friend in whom Eric confided.Richard also finds out from his girlfriend that the ring is a fake.
-Which of the following is Richard guilty of in threatening to tell Eric's parents about the arrest unless Eric rents the apartment?

Accepted Answer

A)Duress occurs when one party is forced into the agreement by the wrongful act of
another,which would include the circumstance in which one party threatens extortion to gain consent to a contract.
B)Duress occurs when one party is forced into the agreement by the wrongful act of another,which would include the circumstance in which one party threatens extortion to gain consent to a contract.
C)Duress occurs when one party is forced into the agreement by the wrongful act of another,which would include the circumstance in which one party threatens extortion to gain consent to a contract.
D)Duress occurs when one party is forced into the agreement by the wrongful act of another,which would include the circumstance in which one party threatens extortion to gain consent to a contract.
E)Duress occurs when one party is forced into the agreement by the wrongful act of another,which would include the circumstance in which one party threatens extortion to gain consent to a contract.

Question 10

[Pet Pig Farm] Jen was interested in buying Monique's land in order to breed small pet pigs.Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs.Monique assured her that a spring ran through one corner of the property.Therefore,Jen agreed to buy the farm.Jen,who loved pigs,assumed that the neighbors would be pleased with the pigs being in the area.Monique also agreed to sell Jen a used truck for $5,000.After the contract for the land sale was entered into,Jen had a land survey done,and it was discovered that the spring did not actually run through the corner of Monique's property.The area in which the spring ran belonged to a neighbor.Additionally,when Monique brought Jen the used truck,Jen said,"That's not the truck!" It was discovered that Monique,who had two trucks,thought that Jen had bought the older truck although Jen thought she had purchased the newer truck.Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance.It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries.
-Assuming that Monique made an innocent misrepresentation regarding the spring running through the corner of the farm with no reason to believe that this item was incorrect,which of the following is true,considering only the lack of a spring issue,if Jen does not want to go through with the sale?

Accepted Answer

A)Innocent misrepresentations permit the misled party to rescind the contract.
However,because the other party had no intent to mislead,the aggrieved party cannot sue for damages.
B)Innocent misrepresentations permit the misled party to rescind the contract.However,because the other party had no intent to mislead,the aggrieved party cannot sue for damages.
C)Innocent misrepresentations permit the misled party to rescind the contract.However,because the other party had no intent to mislead,the aggrieved party cannot sue for damages.
D)Innocent misrepresentations permit the misled party to rescind the contract.However,because the other party had no intent to mislead,the aggrieved party cannot sue for damages.
E)Innocent misrepresentations permit the misled party to rescind the contract.However,because the other party had no intent to mislead,the aggrieved party cannot sue for damages.

Question 11

As described in the text,which statement is true regarding consumers and Japanese law?

Accepted Answer

A)In Japan,a special Consumer Contracts Law was developed which is considered to place consumers and businesses on a more equal footing in transactions.
B)In Japan,a special Consumer Contracts Law was developed which is considered to place consumers and businesses on a more equal footing in transactions.
C)In Japan,a special Consumer Contracts Law was developed which is considered to place consumers and businesses on a more equal footing in transactions.
D)In Japan,a special Consumer Contracts Law was developed which is considered to place consumers and businesses on a more equal footing in transactions.
E)In Japan,a special Consumer Contracts Law was developed which is considered to place consumers and businesses on a more equal footing in transactions.

Question 12

What would be the most likely result if Eric attempts to rescind the agreement to rent the apartment?

Accepted Answer

A)One party threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
B)One party threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
C)One party threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
D)One party threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
E)One party threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.

Question 13

The reasoning in innocent misrepresentation cases resembles the reasoning in a[n] case.

Accepted Answer

A)The reasoning in innocent misrepresentation cases resembles the arguments in a
mutual mistake case.
B)The reasoning in innocent misrepresentation cases resembles the arguments in a mutual mistake case.
C)The reasoning in innocent misrepresentation cases resembles the arguments in a mutual mistake case.
D)The reasoning in innocent misrepresentation cases resembles the arguments in a mutual mistake case.
E)The reasoning in innocent misrepresentation cases resembles the arguments in a mutual mistake case.

Question 14

Which is the correct legal term,if any,for Eric's action in regard to running back the odometer?

Accepted Answer

A)Concealment is the active hiding of the truth about a material fact.
B)Concealment is the active hiding of the truth about a material fact.
C)Concealment is the active hiding of the truth about a material fact.
D)Concealment is the active hiding of the truth about a material fact.
E)Concealment is the active hiding of the truth about a material fact.

Question 15

Valerie promised to buy Nicole's car for $2,000.Nicole drew up the contract providing that the exchange would occur the next week.Unfortunately,Nicole was not very good with the keyboard and typed in $1,200 as the price of the car.Valerie noticed that the contract said $1,200,not $2,000,and was very pleased.She signed it without saying anything.When it was time to make the exchange,Valerie gave Nicole $1,200.In response to Nicole's inquiry regarding an additional
$800,Valerie pulled out the contract and showed her that it said $1,200.Nicole immediately responded that she had made a typographical error.Valerie said that there was no mistake on her part because she knew exactly what she was doing and that she thought that Nicole had decided to give her a deal on the car.Which of the following is Nicole's best argument for a rescission of the contract?

Accepted Answer

A)On rare occasions,rescission is permitted for unilateral mistakes.Rescission is appropriate when the mistake was caused by a clerical error that was accidental and did not result from gross negligence;or the mistake was so serious that the contract is unconscionable,that is,so unreasonable that it is outrageous.
B)On rare occasions,rescission is permitted for unilateral mistakes.Rescission is appropriate when the mistake was caused by a clerical error that was accidental and did not result from gross negligence;or the mistake was so serious that the contract is unconscionable,that is,so unreasonable that it is outrageous.
C)On rare occasions,rescission is permitted for unilateral mistakes.Rescission is appropriate when the mistake was caused by a clerical error that was accidental and did not result from gross negligence;or the mistake was so serious that the contract is unconscionable,that is,so unreasonable that it is outrageous.
D)On rare occasions,rescission is permitted for unilateral mistakes.Rescission is appropriate when the mistake was caused by a clerical error that was accidental and did not result from gross negligence;or the mistake was so serious that the contract is unconscionable,that is,so unreasonable that it is outrageous.
E)On rare occasions,rescission is permitted for unilateral mistakes.Rescission is appropriate when the mistake was caused by a clerical error that was accidental and did not result from gross negligence;or the mistake was so serious that the contract is unconscionable,that is,so unreasonable that it is outrageous.

Question 16

Which result is most likely in the dispute between Jen and Monique regarding which used truck was sold,assuming that both Jen and Monique were innocently mistaken and did not intend to defraud the other?

Accepted Answer

A)In a similar situation involving two ships named Peerless,the court rescinded the
contract.
B)In a similar situation involving two ships named Peerless,the court rescinded the contract.
C)In a similar situation involving two ships named Peerless,the court rescinded the contract.
D)In a similar situation involving two ships named Peerless,the court rescinded the contract.
E)In a similar situation involving two ships named Peerless,the court rescinded the contract.

Question 17

One way to prevent a claim of misrepresentation is to add a[n] to a contract.

Accepted Answer

A)In Fantastic Sams Salons Corp.v.PSTEVO,LLC and Jeremy Baker,the court
dismissed defendants' fraudulent misrepresentation counterclaim because,in response to a disclaimer in the contract,defendant affirmed that certain representations were not made.

Question 18

Which statement is true if Jack seeks to rescind the contract for the sale of the Mustang?

Accepted Answer

A)Threatening extortion to gain consent to a contract would trigger a successful
request for rescission on grounds of duress.
B)Threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
C)Threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
D)Threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.
E)Threatening extortion to gain consent to a contract would trigger a successful request for rescission on grounds of duress.

Question 19

[Cheap Motorcycle] Jack,an unpleasant,disagreeable,business law teacher,notices that a student,Liam,who is past the age of majority,has a nice motorcycle for sale.Liam has struggled through school,is in his last semester,and needs to pass business law in order to graduate.Jack tells Liam that he would like to see Liam pass and,in the next sentence,says that he wants to buy the motorcycle for $100,a price far below the value of the motorcycle.Liam asks if Jack is serious about the price,and Jack replies,"I have the power here! Take it or leave it!" Jack proceeds to draw up a contract for the sale of the motorcycle for $100 which Liam signs.Liam does some research and finds that Jack has had several arrests for driving under the influence in a nearby town.As an act of revenge,Liam tells Jack that unless Jack sells Liam his new Mustang convertible for $50,he will send a letter about the arrests to the school newspaper.Jack reluctantly agrees to the deal.
-What is true if Liam seeks to rescind the contract for the sale of the motorcycle?

Accepted Answer

A)Duress occurs when one party is forced into an agreement by the wrongful act of
another.
B)Duress occurs when one party is forced into an agreement by the wrongful act of another.
C)Duress occurs when one party is forced into an agreement by the wrongful act of another.
D)Duress occurs when one party is forced into an agreement by the wrongful act of another.
E)Duress occurs when one party is forced into an agreement by the wrongful act of another.

Question 20

Assuming that Monique made a fraudulent misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct,which of the following is true,considering only the lack of a spring issue,if Jen does not want to go through with the sale?

Accepted Answer

A)The effect of both a negligent misrepresentation and a fraudulent misrepresentation is that the victim can either rescind the contract or keep the contract and sue for damages,whereas if the mistake is innocent,the victim can seek only rescission.
B)The effect of both a negligent misrepresentation and a fraudulent misrepresentation is that the victim can either rescind the contract or keep the contract and sue for damages,whereas if the mistake is innocent,the victim can seek only rescission.
C)The effect of both a negligent misrepresentation and a fraudulent misrepresentation is that the victim can either rescind the contract or keep the contract and sue for damages,whereas if the mistake is innocent,the victim can seek only rescission.
D)The effect of both a negligent misrepresentation and a fraudulent misrepresentation is that the victim can either rescind the contract or keep the contract and sue for damages,whereas if the mistake is innocent,the victim can seek only rescission.
E)The effect of both a negligent misrepresentation and a fraudulent misrepresentation is that the victim can either rescind the contract or keep the contract and sue for damages,whereas if the mistake is innocent,the victim can seek only rescission.

Quiz 17: Legal Assent