Fact Pattern 14-B3
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to per?form, Ripe Produce files a suit to enforce the contract.
-Refer to Fact Pattern 14-B3. If Pete and Ripe Produce are in a state that does not recognize the doctrine of unconscionability, to defend suc?cess?fully against enforce?ment of the contract on similar grounds, Pete might rely on traditional notions of
A) fraud.
B) materiality.
C) mistake.
D) unconscionability.

Question

Fact Pattern 14-B3 
Pete, the owner of Quality Orchards, contracts to sell fruit to Ripe Produce, Inc. When Pete refuses to per?form, Ripe Produce files a suit to enforce the contract.
-Refer to Fact Pattern 14-B3. If Pete and Ripe Produce are in a state that does not recognize the doctrine of unconscionability, to defend suc?cess?fully against enforce?ment of the contract on similar grounds, Pete might rely on traditional notions of
A) fraud.
B) materiality.
C) mistake.
D) unconscionability.

Quizplus · Accepted Answer

Since the state does not recognize the doctrine of unconscionability, Pete cannot rely on that defense. However, he may be able to successfully defend against enforcement of the contract by showing that Ripe Produce induced him to enter into the contract through fraud, which involves intentional misrepresentation or concealment of material facts. Materiality relates to the significance or importance of the fact or information that was misrepresented, and mistake refers to an error in understanding or lack of knowledge about a fact or information that led to entering into the contract.