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 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 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 either statement was true when he made them. On these facts, which of the following is true?

Question

Quizplus · Accepted Answer

Paul could sue for rescission because of the misrepresentation. There are two types of misrepresentation: innocent and fraudulent. Innocent misrepresentation occurs when the person making the statement honestly believes it to be true but it later turns out to be false. In such cases, the buyer may only rescind the contract but cannot sue for damages. Paul may rescind the contract because the printer didn't interface with his computer, which was a material fact that influenced his decision to buy the printer. He paid $900 for a printer that he cannot use, and he has the right to get his money back. However, Keri cannot sue for damages because she gave the money to the student fund voluntarily without any expectation of receiving anything in return, and the seller did not make any misstatement to her.

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