Civil Law Questions

Legal Concepts16Copyright © 2013 Pearson Education, Inc.73) Which of the following is true of undue influence in entering contracts?A) Undue influence need not require the overcoming of the innocent party's free will.B) Undue influence is not grounds for prosecution, as the innocent party has complete freedomto evaluate the terms of the contract.C) A contract that is entered into because of undue influence is not voidable.D) A fiduciary or confidential relationship must have existed between the parties for undueinfluence to be proven.

Factual Application11Copyright © 2013 Pearson Education, Inc.55) ________ occurs when the party knows what he or she is signing but has been fraudulentlybeen led into the contract.A) Fraud in the factumB) Fraud in the inducementC) Fraud by concealmentD) Misrepresentation of law

Legal Concepts50) Which of the following is true of misrepresentation?A) A misrepresentation is not actionable unless the innocent party relied on themisrepresentation and acted on it.B) An innocent party who acts in reliance on a misrepresentation need not justify his or herreliance.C) An innocent party must prove that the wrongdoer's misrepresentation was the sole reason heor she entered into the contract.D) An innocent party need not prove economic injury to recover damages for fraud.

Legal Concepts68) Gary and Mary are siblings involved in a legal tangle over who gets possession of theirancestral home. Gary threatens to kill Mary's husband if she does not sign papers declaringGary's sole ownership of their home. This is an instance of ________.A) scienterB) batteryC) undue influenceD) duress

Factual Application13Copyright © 2013 Pearson Education, Inc.61) Which of the following is not actionable as fraud?A) misrepresentation of lawB) silence as misrepresentationC) marriage to obtain rights of immigrationD) identity theft

Factual Application41) Which of the following constitute a mutual mistake of a material fact?A) Martha selling her house to Graham and hiding the fact that its first floor is damagedB) Martha and Graham agreeing on the sale of a house, both referring to different housesC) Graham buying a house from Martha without asking her details of damagesD) Martha selling Graham an old vase for $20, both of them unaware that it is a valuable antiquecollectible

Legal Concepts8Copyright © 2013 Pearson Education, Inc.43) A contract in which both parties are mistaken about the value of the object of the contract isconsidered ________.A) unenforceableB) unconscionableC) non-rescindableD) void

Legal Concepts53) ________ occurs if a person is deceived as to the nature of his or her act and does not knowwhat he or she is signing.A) Fraud in the inducementB) Fraud in the factumC) Fraud by concealmentD) Fraud by suppression

Legal Concepts54) Millie receives a parcel from her aunt in Indonesia. The delivery man asks her to sign anauthorization document to receive the parcel. Millie signs without reading the document, as sheis in a hurry. However, on the other side of the document are contract terms that transfer all ofMillie's property to the delivery man. This is an instance of ________.A) fraud in the inceptionB) fraud in the inducementC) fraud by concealmentD) misrepresentation of law

Factual Application57) Contracts involving fraud in inducement are ________.A) validB) voidC) voidableD) non-rescindable

Legal Concepts56) Alice offers Richard a chance to work in her affiliate marketing program which, she claims,will make him a millionaire in three months. Richard makes the "mandatory investment" of$12,000 and becomes an affiliate. Soon, he realizes that such a program does not exist and thatAlice has disappeared with the money. This is an instance of ________.A) misrepresentation of lawB) fraud in the factumC) fraud in inducementD) duress

Legal Concepts12Copyright © 2013 Pearson Education, Inc.58) Melissa Harrison, a realtor, sells a house to the Smiths. Before the sale is finalized, Mr.Smith asks Melissa for details of repairs the house has undergone over the years. Melissa giveshim details of minor repairs but hides all documents regarding a major plumbing defect that wasrepaired last year. Three months after the Smiths moved in, the defect reappeared that caused thefirst floor to flood, damaging their expensive carpet and furniture. Melissa is liable for which ofthe following frauds?A) fraud in the inceptionB) fraud in the inducementC) fraud by concealmentD) fraud in the factum

Legal Concepts33) Taking advantage of another person's mental, emotional, or physical weakness and undulypersuading that person to enter into a contract constitutes duress.

Legal Concepts10Copyright © 2013 Pearson Education, Inc.51) Jeffrey became a victim of fraud when he entered a pyramid scheme which turned out to be ascam. In order to claim damages, Jeffrey has to prove which of the following?A) misrepresentationB) motive of the fraudsterC) economic injuryD) involvement in the pyramid scheme

Legal Concepts7Copyright © 2013 Pearson Education, Inc.39) Heather chooses to buy a scarf at Macy's and reads the price on the tag as $50. She uses hercredit card to pay for the scarf, but post-purchase, she notices that the price tag actually says$500. This is an instance of a(n) ________.A) bilateral mistakeB) mutual mistake of valueC) innocent misrepresentationD) unilateral mistake

Legal Concepts36) ________ is an action to undo a contract.A) RescissionB) RecessionC) RestitutionD) Inception

Legal Concepts37) Which of the following is true of a unilateral mistake?A) Only one mistake or ambiguity is present in the subject matter of the entire contract.B) Out of several contracts drafted simultaneously between two parties, one has a mistake in itssubject matter that does not concern the other contracts.C) Only one party is mistaken about a material fact regarding the subject matter of a contract.D) A single mistake about a material fact in the subject matter of a contract appears several timesin the contract.

Factual Application42) ________ is a mistake made by both parties concerning an object that is important to thesubject matter of a contract.A) Mutual mistake of valueB) Mutual mistake of material factC) Elementary unilateral mistakeD) Fraud by concealment

Factual Application59) Which of the following occurs when one party intentionally hides a material fact fromanother party?A) fraud in the inducementB) fraud in concealmentC) silence as misrepresentationD) misrepresentation of law

Legal Concepts9Copyright © 2013 Pearson Education, Inc.47) To prove fraud, which of the following elements must be shown?A) The innocent party knew the wrongdoer.B) The innocent party was the one who detected fraud.C) The wrongdoer assumed a false identity.D) The wrongdoer intended to deceive the innocent party.