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 that 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 Macintosh clone.Paul paid $900 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 (i.e.,the printer didn't interface with Paul's computer and the store was doing nothing for the student),and that the seller didn't believe that the statements were true when he made them.On these facts,which of the following is true?
A)Only Keri has a remedy because she had been fraudulently misrepresented.
B)Paul could sue for damages due to an innocent misrepresentation.
C)Keri could sue for damages due to a misunderstanding.
D)The court would rescind Paul's contract only with proof that the seller knew his statement was false.
E)Paul could sue for rescission because of the misrepresentation.

Question

Quizplus · Accepted Answer

Paul could sue for rescission because the seller made a false statement of fact that induced him to buy the printer. The fact that the seller did not believe the statement was true does not matter because the statement was still false. Innocent misrepresentation can be a valid ground for rescission. Keri could potentially also have a claim for fraudulent misrepresentation because she donated to the student fund based on the seller's false statement. However, there is no mention of her wanting to rescind any contract, so option E is the best choice. Option A is incorrect because Paul also has a potential legal remedy. Option B is incorrect because the misrepresentation was not innocent. Option C is unclear and not supported by the facts given. Option D is incorrect because the seller's knowledge of the falsehood of the statement is not required for rescission.

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