Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?
A) The seller concealed the broken drawer of the desk from the buyer. He would not be able to see it until he got it home.
B) The seller persuaded the buyer to buy the car by misrepresenting it as having just been serviced and passing the air care test. Neither had been done, but the seller honestly believed both had been done.
C) The seller was persuaded to buy the car by a misrepresentation that it had the fewest repairs of any car of its class. After the buyer learned of the truth, he kept the car for three weeks to get some benefit from it before taking it back.
D) A man who contracted for an insurance policy did not state on the application form that he had been treated for cancer. He died from the cancer two months later.
E) None of the above.

Question

Quizplus · Accepted Answer

If the buyer, after learning of the misrepresentation, continues to use the item and derives benefit from it, they may lose the right to rescind the contract.

Which of the Following Constitutes a Misrepresentation That Would Not