70. The primary distinction between an action based on innocent misrepresentation and an action based on common law fraud is that, in the former, a party need not allege and prove: A. that there has been a false representation. B. the materiality of the misrepresentation. C. reasonable reliance on the misrepresentation. D. that the party making the misrepresentation had actual or constructive knowledge that it was false.

71. In which of the following cases can the remedy of rescission be invoked by the affected party? A. Mistake of tort B. Mistake of contract C. Mistake of law D. Mistake of fact

72. Which source of law requires the acceptance to be a "mirror image" of the offer in order to form a contract? A. Common Law B. Constitutional Law C. Natural Law D. Theocratic Law

73. Consideration can be a(n) _____ in the case of a bilateral contract. A. act B. promise C. exchange D. gift

74. Jill voluntarily uses Joe's lawn mower, even though Joe had told her that his mower frequently fails and can even cause accidents. In case of an accident, Joe has the defense of: A. contributory negligence. B. assumption of risk. C. comparative negligence. D. comparative fault.

75. The underlying purpose of the Statute of Frauds is to: A. prevent frauds in general. B. corroborate the existence of the oral contract. C. punish those who commit frauds. D. make fraud illegal.

76. Which of the following is also termed a "liability waiver"? A. exculpatory clause B. nondisclosure agreement C. confidentiality clause D. noncompetition clause

77. A fact is considered to be material in a misrepresentation case when: A. the misrepresentation is considered to be innocent. B. it plays an important role in inducing a person to enter into a contract. C. it is relied upon by a person, even though it could not possibly be true. D. it is similar to an opinion or promise about some future happening.

78. Identify the difference between a case involving intentional fraud and innocent misrepresentation. A. The contractual remedy of rescission is not available in a misrepresentation case. B. A person committing innocent misrepresentation is liable for punitive damages for the tort of deceit. C. Reasonable reliance of the complaining party is not required in a fraudulent case. D. Materiality is not required in a fraudulent case.

79. Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of: A. consideration. B. definiteness. C. communication to offeree. D. present intent to contract.

80. Sam, a plumber, entered into a contract for $75,000 with Orr, Inc., to perform certain plumbing services in a building owned by Orr. After Sam had satisfactorily performed the work, Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license. As a result, Orr denied paying any money to Sam. The licensing statute was enacted merely to raise revenue for the state. An independent appraisal of Sam's work indicated that the building's fair market value increased by $70,000 as a result of Sam's work. The cost of the materials which Sam supplied was $35,000. If Sam sues Orr, Sam will be entitled to recover: A. nothing. B. $35,000. C. $70,000. D. $75,000.