Miles purchased a motorcycle from LB Cycles.He later learned that the salesman had made misrepresentations to induce him to make the purchase.Under UCC Section 2-721,can Miles rescind the contract?
A)Yes, but only if the misrepresentation was fraudulent.
B)Yes, but he cannot sue for damages if the misrepresentation was innocent.
C)Yes, and he can sue for damages whether the misrepresentation was fraudulent or innocent.
D)No, as the contract has been fully executed.

Question

Quizplus · Accepted Answer

UCC Section 2-721 allows a buyer to rescind a contract if the seller has made misrepresentations that induced the buyer to make the purchase. The misrepresentation could be innocent or fraudulent, and the buyer can sue for damages in either case. Therefore, choice C is the correct answer. Choice A is incorrect because UCC Section 2-721 does not require the misrepresentation to be fraudulent. Choice B is incorrect because the buyer can sue for damages even if the misrepresentation was innocent. Choice D is incorrect because the fact that the contract has been executed does not bar the buyer from rescinding the contract under UCC Section 2-721.

Miles Purchased a Motorcycle from LB Cycles