___________ is based on pressure exerted by coercion; _________________'s pressure is exerted through persuasion.

Multiple Choice

Scienter; fraud

Undue influence; duress

Fraud; scienter

Duress; undue influence Bottom of Form

Assume Eric enters a contract under each of the following circumstances.Which of them is void, rather than voidable?

Multiple Choice

Doug believes that the dog is a purebred and tells Eric that, but it turns out it is a mutt and Eric overpaid.

Doug lies and tells Eric that his dog is a purebred, when it is actually a mutt, inducing Eric to buy the dog.

Eric buys Doug's dog, because Dougwho is Eric's bossthreatened to fire Eric if he didn't.

Doug grabs Eric's hand and physically compels him to sign a contract to buy his dog.

Doug and Eric both believe that Eric is buying a breeding dog, when the dog is actually infertile.

Frank is unsure about whether he wants to buy Eric's computer. Eric grabs Frank's hand and physically forces him to sign a written contract to purchase the computer.The contract is __________

Multiple Choice

mistaken

material

void

affirmed

voidable

Which of the following is NOT true of a contract that lacks real consent due to misrepresentation, fraud, mistake, duress, or undue influence?

Multiple Choice

Rescission is the remedy.

Punitive damages generally are not available.

The contract is voidable.

The contract is void.

A party who wishes to rescind such a contract must avoid any behavior that would suggest she ratifies it.

Meyer sells his drone to Ryland.The drone had crashed, Meyer fixed it by getting parts from other used drones.Ryland thinks the drone looks a little funny, and asks Meyer about it. Ryland says that he really needs a drone that is in mint condition. Meyer hears the question, but ignores it. Instead, he purposely distracts Ryland by pointing out a number of the great features of the drone. Ryland decides to buy the drone because he trusts that Meyer would not lead him astray. They are good friends. Under which consent defense could Ryalnd rescind the contract to buy the drone?

Multiple Choice

Fraud

Innocent misrepresentation

Unilateral mistake

Business compulsion

Undue influence

Suppose you entered a contract to buy your friend's iPad. Without your knowledge, it was malfunctioning at the time you bought it, and it died shortly after you started using it. Your friend did not know about the malfunction at the time he sold the iPad to you. In fact, he told you it was "in tip-top shape . . . as good as new." You reasonably relied on his assessment of the iPad's functioning. What legal claim could you make and what would be the remedy if you were successful?

Multiple Choice

Claim the contract was voidable due to fraud and force your friend to pay you punitive damages.

Claim the contract was void due to fraud and force your friend to buy you a new iPad.

Claim the contract was voidable due to innocent misrepresentation and force your friend to buy you a new iPad.

Claim the contract was voidable due to innocent misrepresentation and have the contract rescinded.

Claim the contract was voidable due to innocent misrepresentation and get punitive damages.

A party with the right to rescind a voidable contract due to duress ____________________.

Multiple Choice

may do so at any time at his election

must notify the other party in person

can begin to perform the contract and then change her mind

must do so in a timely manner or risks ratifying the contract

must always do so within 24 hours of discovering the right to rescind, regardless of the circumstances

Which of the following is true about the relationship between mutual mistake and unilateral mistake?

Multiple Choice

The elements are the same; the difference is only a matter of describing who is mistaken.

Unilateral mistake makes a contract voidable; mutual mistake makes it void.

Avoiding a contract based on unilateral mistake is easier than avoiding a contract based on mutual mistake.

Unilateral mistake incorporates all of the elements of mutual mistake, plus an additional element.

Unilateral mistake incorporates all of the elements of mutual mistake, except materiality.

Duress is based on pressure exerted by __________; undue influence's pressure is exerted through ____________.

Multiple Choice

unfairness; scienter

persuasion; coercion

coercion; persuasion

unfairness; scienter

scienter; unfairness

Which of the following does NOT describe a way in which unilateral mistake is different from mutual mistake?

Multiple Choice

Unilateral mistake requires the mistake to have a material effect, mutual mistake does not.

Mutual mistake requires that both parties be mistaken about the same fact; unilateral mistake does not.

Unilateral mistake requires showing an additional element beyond that required of mutual mistake.

It is more difficult to rescind a contract based on unilateral mistake than mutual mistake.

Unilateral mistake only requires that one party to a contract have a mistaken belief about it.

Which of the following does NOT make a contract voidable?

Multiple Choice

Lying to someone about the subject of the contract.

Taking advantage of an elderly aunt to get her to sign a disadvantageous contract.

Making a fair deal when one party making a mistake about the subject of the contract without the other realizing.

Both parties are mistaken about an important aspect of the contract.

Threatening to stab someone with a knife unless he signs a contract.

If a contract lacks consent due to misrepresentation, fraud, mistake, duress, or undue influence, which of the following is correct?

Multiple Choice

Punitive damages are available.

Only minors can lack real consent under these defenses.

A party to the contract can ratify it, thus losing the right to rescission.

The contract is void.

A party must prove scienter under each defense to be entitled to rescission.

Which of the following statements, if it turns out to be false, is most likely to give rise to a successful rescission claim of fraud or misrepresentation?

Multiple Choice

"You should be able to sell this ring in a few years for a substantial profit."

"I believe that it would be hard to find a house of this age that is in as good of condition."

"If you buy this dishwasher from me, I guarantee you will be back in a month's time to thank me."

"This car has only 40,000 miles on the odometer."

"Because the market is likely to move upward, you should buy this stock now at a low price."

Which of the following is true of economic duress?

Multiple Choice

There is no such thing; only physical duress exists.

Only when the contracting parties are in a relationship of confidence and trust, can economic duress exist.

Threats to economic or business interests are always improper.

Threats to economic or business interests must be sufficiently improper or coercive to constitute duress.

The threat to an economic interest must be criminal for it to constitute duress.

Which of the following statements, if it turns out to be false, is most likely to give rise to a successful rescission claim of fraud or misrepresentation?

Multiple Choice

"If you buy this dress, everyone's eyes will be on you all night at the prom."

"I believe that it would be hard to find another house of this age that is as well insulated."

"You should be able to sell this car in five years for no less than half of what you pay for it today."

"This truck has a towing capacity of 12,000 pounds."

"I would buy the gold necklace, because gold prices are likely to continue climbing."

If a party proves that he or she suffered an actual economic injury resulting from a fraud, assuming it is allowed in his or state, what tort may be present?

Multiple Choice

Duress

Tortious interference

Malice

Undue Concealment

Deceit

Which of the following is least likely to constitute duress?

Multiple Choice

A clergyman's using a parishioner's guilt over her "sins" to get the parishioner to enter a contract with him.

Offering to pay only $3,000 of $10,000 you owe to your friend and refusing to pay a dime if she declines.

Grabbing someone's hand and forcing him to write a "x" on a contract you have prepared.

Holding a gun to the head of a child and threatening to shoot if his mother does not enter a contract with you.

Threatening a frivolous lawsuit against someone who cannot afford a lawyer, to get her to contract with you.

Which of the following does NOT make a contract voidable?

Multiple Choice

Mutual mistake in drafting a contract.

Threatening to break someone's leg unless he signs a contract.

Taking advantage of an intellectually disabled friend to get her to sign a disadvantageous contract.

Making a fair deal when one party making a mistake about the subject of the contract without the other realizing.

Lying to someone about the subject of the contract.

Suppose you entered a contract to buy your friend's iPad. Without your knowledge, it was malfunctioning at the time you bought it, and it died soon after you started using it. Your friend had recently removed a large number of applications from the iPad that were not working. Although he honestly thought the problem was with the applications and not the iPad itself, he failed to tell you about the problem. You reasonably concluded, based on your inspection of all of the current applications on the iPad, that it was functioning properly. Can you rescind the contract to buy the iPad?

Multiple Choice

Yes, due to mutual mistake.

No, the latent malfunction was not material, because the iPad was functioning when you bought it.

Yes, due to fraud.

Yes, due to undue influence.

Yes, due to innocent misrepresentation.

Suppose you entered a contract to buy your friend's iPad. Without your knowledge, it was malfunctioning at the time you bought it, andsoon after you started using itwas completely useless. You are able to prove that your friend knew about the malfunction, concealed it from you on purpose, and you reasonably relied on his presentation to you regarding its proper functioning because he works for Apple designing iPad components. Thus, you are able to prevail on a claim for rescission based on fraud. What happens now?

Multiple Choice

Your friend will pay a penalty and serve a few days in jail.

You must give back the iPad and your friend must give your money back.

Your friend must buy you a new iPad.

Your friend must give you your money back and enough additional money to buy a brand new iPad.

Your friend must give your money back and you can keep the iPad.

Which consent defense, if proven, may also give rise to tort liability; however, the claimant must usually prove actual economic injury in addition to the defense's elements and some jurisdictions require the claimant to choose between, or elect, which remedy he or she prefers?

Multiple Choice

Rescission

Fraud

Scienter

Mutual mistake

Innocent misrepresentation

Dingle threatens to breach an existing contract unless Porter enters another unrelated contract with Dingle.Which of the following is true?

Multiple Choice

Only threats of criminal activities can be the basis for duress, so this is not duress.

This is only duress if Dingle is in a relationship of trust or confidence with Porter.

Unless Dingle uses the threat of physical force against Porter, it is not duress.

This type of situation is always duress.

This is more likely to be duress if Porter has no alternative contracting partner for the initial contract.