Question 1

Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides "like the wind." Kurt's statement is

Accepted Answer

Kurt's statement is an exaggeration and is considered puffery, which is a marketing technique that uses exaggerated or vague statements to promote a product or service, but is not considered fraudulent.

Question 2

Yvon,a golf pro,convinces Zach,who has no athletic ability,that he has considerable talent and induces him to pay Yvon $10,000 for golf lessons.When Zach realizes the truth,he files a suit against Yvon.Zach is most likely to recover on the basis of

Accepted Answer

Yvon used misrepresentation to induce Zach to pay for golf lessons. Misrepresentation occurs when one party makes a false statement to induce another party to enter into a contract. In this case, Yvon made a false statement about Zach's talent to induce him to pay for golf lessons. Therefore, Zach is most likely to recover on the basis of misrepresentation.

Question 3

Genie.com initiates an online dating service.To attract subscribers and encourage participation,Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users.Fooled by the false profiles,Ham buys a subscription.He is most likely a victim of

Accepted Answer

Ham is most likely a victim of fraud, as Genie.com created and posted profiles of fictitious persons and exaggerated profiles of actual users to deceive him into purchasing a subscription.

Question 4

Dale files a suit against Eve,alleging her fraud in entering into a con?tract with him.Proof of an injury is required

Accepted Answer

To recover damages, proof of an injury is required in a lawsuit alleging fraud in entering into a contract. Without proof of injury, the court cannot award damages to the plaintiff. Proof of injury is not necessary to rescind the contract, but it is required to recover damages. The undoing of Eve's influence is not relevant in this case.

Question 5

Fact Pattern 14-B2 
Nano Corporation offers to sell a robotic device to Motor Assembly,Inc. ,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500.Motor accepts the written offer.
-Refer to Fact Pattern 14-B2.Motor's best argument in favor of enforcement of the contract is that

Accepted Answer

Motor's best argument would be that Nano Corporation made a unilateral mistake, meaning only one party (Nano Corporation) made the mistake. Unilateral mistakes may be grounds for contract rescission if the other party knew or had reason to know of the mistake, or if enforcement of the contract would be unconscionable. However, if Motor was not aware of the mistake and enforcement of the contract would not be unconscionable, the contract would still be enforceable. Bilateral mistakes and mistakes of value would not be applicable in this situation. The fact that the price was below the prices of comparable devices is not relevant in determining the enforcement of the contract based on mistake.

Question 6

Safron threatens physical harm-"you don't want anything to happen to you or your family"-to force Tivoli to sell his business,Umbrellas Unlimited,Inc. ,to Safron for a below-market price.This is

Accepted Answer

Safron's use of physical threats to force Tivoli to sell his business is an example of duress, which is a form of coercion that involves the use of threats or violence to compel someone to do something they would not ordinarily do. This behavior is illegal and unethical, and Tivoli could potentially take legal action against Safron for his actions.

Question 7

Fact Pattern 14-B2 
Nano Corporation offers to sell a robotic device to Motor Assembly,Inc. ,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500.Motor accepts the written offer.
-Refer to Fact Pattern 14-B2.Nano's best defense against enforcement of the contract is that Opal knew

Accepted Answer

The answer of Fact Pattern 14-B2 
Nano Corporation offers to...

Question 8

Lew believes an old comic book he owns has little value,but Murray is con?vinced it is a valu?able collector's item.Lew sells it to Murray for $10 before learning it is worth $1,000.Lew can

Accepted Answer

Lew cannot rescind the contract because the sale was made under a mutual mistake of value, which generally does not allow for rescission. There was no fraud, mistake of fact, or puffery involved.

Question 9

Cooper offers to sell Gable his sport utility vehicle (SUV)and says that it has never been in an accident.Relying on Cooper's statement,Gable buys the SUV.Later,when it develops mechanical problems,Gable can

Accepted Answer

Cooper's statement that the SUV has never been in an accident is a material fact that turned out to be false, which constitutes fraud. Gable can rescind the contract on the basis of fraud.

Question 10

At an auction for the first time,Max bids on an object,believing that it is worth more than the price asked.When the item proves to be less valuable,Max is

Accepted Answer

Max is liable on the bid because in an auction, the bidder accepts the risk that the item may be worth less than their perception of its value. It is the responsibility of the bidder to research and evaluate the item before placing a bid. Therefore, Max must pay for the item even though it turned out to be less valuable than expected.

Question 11

Rowan,a famous chef,sells to Patricia a restaurant that Rowan closed years ago.Patricia discovers in the restaurant a collection of Rowan's recipes,which are considered valuable.In a suit to obtain the recipes,Rowan will likely

Accepted Answer

Rowan will likely win because there was no voluntary consent to the sale of the recipes. The recipes were not explicitly included in the sale, and without Rowan's consent to transfer them, they remain his intellectual property.

Question 12

Fact Pattern 14-B4 
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-B4.To defend successfully on the ground of un?con?scionability,Pete must show that enforcement of the contract would be

Accepted Answer

For a contract to be considered unconscionable, it must be so one-sided and oppressive that it would be manifestly unfair to enforce it. This means that Pete would have to show that not only is the contract unfairly beneficial to Ripe Produce, but also that enforcing it would be oppressive or unfair to him. The other options, such as economically meaningless or legally worthless, do not necessarily relate to the concept of unconscionability.

Question 13

Urban City and Thru-way Construction Company enter into a contract that includes calculations.Urban,whose engineer,Sergei,compiled the figures,discovers later that some numbers were added incorrectly,but Thru-way refuses to make changes.Urban can

Accepted Answer

Urban can rescind the contract on the basis of mistake, as Sergei made a genuine calculation error. Thru-way's refusal to make changes after the mistake was discovered would amount to a breach of contract. However, fraud or economic duress do not appear to be applicable factors in this scenario.

Question 14

Flem sells an all-terrain,off-road vehicle to Esteban without disclosing that the odome?ter,which reads 30,000 miles,was disconnected 50,000 miles ago.Flem is most likely liable for

Accepted Answer

Flem intentionally deceived Esteban by disconnecting the odometer and providing false information. This is fraud, and Flem is therefore liable for any damages incurred by Esteban as a result of this deception.

Question 15

Fact Pattern 14-B1
Gert contracts to sell two tracts of land to Hank.Both parties believe that the two tracts are adjacent,but in fact they are not.Gert is still willing to sell the land,but under these circumstances the deal would adversely affect Hank.
-Refer to Fact Pattern 14-B1.The parties' belief about the adjacency of the property is

Accepted Answer

A bilateral mistake occurs when both parties to a contract are mistaken about a fundamental fact, such as the adjacency of the property in this case.

Question 16

Fact Pattern 14-B1
Gert contracts to sell two tracts of land to Hank.Both parties believe that the two tracts are adjacent,but in fact they are not.Gert is still willing to sell the land,but under these circumstances the deal would adversely affect Hank.
-Refer to Fact Pattern 14-B1.Because of the parties' belief about the adjacency of the property,their contract is

Accepted Answer

The contract is voidable because there was a mutual mistake regarding a material fact (the adjacency of the land), which adversely affects Hank. This allows Hank to void the contract.

Question 17

Fact Pattern 14-B3
In selling a house,Robin tells Destry that the wiring and plumbing are of a certain quality.Robin knows nothing about the quality,but it is not as she specifies.Destry buys the house.
-Refer to Fact Pattern 14-B3.Under these circumstances,Destry's best course of action is most likely to

Accepted Answer

Destry's best course of action would be to recover damages or rescind the contract to buy the house since Robin made a false statement about the quality of the wiring and plumbing, which influenced Destry's decision to buy the house. In this case, Destry may be entitled to compensation for any damages incurred as a result of the false statement or may choose to cancel the contract altogether. The other options mentioned are unethical and illegal.

Question 18

Fact Pattern 14-B3
In selling a house,Robin tells Destry that the wiring and plumbing are of a certain quality.Robin knows nothing about the quality,but it is not as she specifies.Destry buys the house.
-Refer to Fact Pattern 14-B3.On learning the truth,Destry confronts Robin,who says she was not trying to fool him-she was only trying to make a sale.This is

Accepted Answer

Robin made a false representation with the intention of making a sale, which constitutes fraud.

Question 19

Roc buys a farm from Steve,who claims that it would be a prime site for a housing subdivision.Roc later learns that the law does not permit the land to be used for housing.Roc may

Accepted Answer

The answer of Roc buys a farm from Steve,who claims...

Question 20

Fact Pattern 14-B4 
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-B4.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

Accepted Answer

Since the state does not recognize the doctrine of unconscionability, Pete cannot rely on that defense. However, he may argue that he was induced into the contract under fraudulent circumstances, which would make the contract voidable. Therefore, Pete can rely on traditional notions of fraud to defend successfully against enforcement of the contract.

Quiz 14: A: Mistakes,fraud,and Voluntary Consent