Civil Law Questions
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Legal Concepts48) Which of the following is true of misrepresentation of a material fact?A) It can occur only by the words of the wrongdoer.B) A misrepresentation is actionable as fraud only if it is the sole factor in inducing the innocentparty to enter into the contract.C) It is actionable as fraud if the misrepresentation is of a past or existing material fact.D) Predictions about the future are considered basis for fraud.
Factual Application40) Kevin goes to the store to purchase a fully-automatic washing machine. He browses throughseveral models of washing machines but does not let the salespersons know that he wants a fullyautomaticmodel. While signing the sales contract, he does not notice that the model he ispurchasing is a semi-automatic machine. After purchase, which of the following options doesKyle have?A) Exchange the machine with a fully-automatic one and sue the store if its does not accept it.B) Demand a full cash refund from the store for fraud in concealment.C) Sue the store for its innocent misrepresentation.D) Keep the semi-automatic washing machine as he made a unilateral mistake.
Legal Concepts38) In which of the following cases of assent is the rescission of a contract unenforceable?A) mutual mistake of valueB) misrepresentation of a material factC) silence as misrepresentationD) innocent misrepresentation
Legal Concepts23) During the sale of a house, if the seller does not inform the buyer about construction flaws ofthe house despite the buyer's enquiry, the seller is liable for fraud by concealment.
Legal Concepts5Copyright © 2013 Pearson Education, Inc.28) Innocent misrepresentation is treated as a mutual mistake.
Legal Concepts34) If there is a confidential relationship between persons, any contract made by the servientparty that benefits the dominant party is presumed to be entered into under undue influence.
Factual Application45) ________ is an event that occurs when one person consciously decides to induce anotherperson to rely and act on a misrepresentation.A) Fraudulent misrepresentationB) Unilateral mistakeC) Bilateral mistakeD) Erroneous misrepresentation
Legal Concepts6Copyright © 2013 Pearson Education, Inc.35) For a situation to be considered "undue influence," the persuasion by the wrongdoer mustovercome the free will of the innocent party.
Legal Concepts44) John buys a watch for $100 at a vintage store. Later, the store learns that the watch was wornby Sean Connery in a James Bond movie and wishes to rescind the sales contract they have withJohn. Which of the following statements is true in this regard?A) The store can rescind the contract immediately and refund $100 to John.B) The store can recover from John the difference between the value of the watch and theamount paid by John.C) The store can declare the contract void and pay John no money.D) The store cannot rescind or void the contract.
Legal Concepts30) Duress is said to have occurred only where a threat involved a physical harm.
Legal Concepts31) Physical duress occurs when there is physical harm to the contractual document, such ascomplete or partial destruction or manipulation of content.
Legal Concepts22) When one party takes specific action to cover a material fact from another party, fraud byenticement occurs.
Legal Concepts25) A misrepresentation of law is actionable as fraud as the innocent party cannot know everylegal detail that applies to the situation.
Legal Concepts24) If a seller does not disclose legal disputes involving the property being sold, he or she isliable for silence as misrepresentation.
Legal Concepts32) A threat to bring a civil lawsuit unless someone enters into a contract constitutes duress.
Legal Concepts29) Duress is a situation in which one party threatens to do a wrongful act unless the other partyenters into a contract.
Legal Concepts27) If an innocent misrepresentation has been made, the aggrieved party may sue for damages.
Legal Concepts26) Misrepresentation of law is a fraud that occurs when a person makes a statement of fact thathe or she honestly and reasonably believes to be true even though it is not.
Legal Concepts11) Intentional misrepresentation is considered fraud.
Legal Concepts3) An action to undo a contract is called restitution.