Keri went to Crandon's computer outlet with her brother Paul, who was buying a laser printer. While she was waiting for him, she saw a poster saying the store was collecting funds for a special computer for a student recently disabled in an accident. The seller induced Paul to buy the model "X" printer by stating as a fact that the printer could interface with his iMac. Paul paid $400 for the printer. Also, Keri gave $15 to the student fund after the seller confirmed he was collecting for the student's computer. Later Paul and Keri learned that neither statement was true-the printer didn't work with Paul's computer and the store was doing nothing for the student-and that the seller didn't believe that either statement was true when he made them. On these facts, which of the following is true?
A) Keri could sue for damages due to a misunderstanding.
B) Paul could sue for damages due to an innocent misrepresentation.
C) Paul could sue for rescission because of the misrepresentation.
D) The court would rescind Paul's contract only with proof that the seller knew his statement was false.
E) Only Keri has a remedy because she had been fraudulently misrepresented.

Question

Quizplus · Accepted Answer

Paul can sue for rescission because the seller made false statements about the printer's compatibility with an iMac, which influenced Paul's decision to purchase. Rescission is a remedy that nullifies the contract, allowing Paul to potentially return the printer and get his money back. The fact that the seller did not believe the statements to be true when making them indicates a misrepresentation that directly affected the contract's formation.

Keri Went to Crandon's Computer Outlet with Her Brother Paul