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| 1 | |
In the granting of mutual assent, a "meeting of the minds" means that _____. |
| | A) | there were lengthy negotiations. |
| | B) | there is a complete understanding of all aspects of the agreement |
| | C) | both parties know the terms and have willingly agreed to be bound by them |
| | D) | both parties know the terms, have willingly agreed to be bound by them, and have had a face-to-face meeting |
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| 2 | |
Eva intentionally and falsely states that an old ring that she is selling to Julia was made in France. Julia, a collector of French jewelry, pays $3,000 for the ring based upon these statements. Julia later learns that the ring was made in Poland and is worth $6,000. May Julia successfully sue Eva for fraud? |
| | A) | No, because Julia has not suffered a loss. |
| | B) | Yes, because where the ring was made was a material fact to Julia. |
| | C) | No, because Julia was free to inspect the ring before purchasing it. |
| | D) | Yes, because Eva intentionally and falsely misstated a material fact. |
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| 3 | |
Ichi covers the rust damage to a car he is selling to Henry with a new paint job. Henry does not ask about rust damage. Has Ichi committed fraud? |
| | A) | No, because Henry didn't ask about rust. |
| | B) | Yes, because Henry cannot be expected to discover the rust. |
| | C) | No, because rusting is a natural process that Henry should understand. |
| | D) | Yes, because Ichi made the car look nicer than it really was. |
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| 4 | |
In a case involving innocent misrepresentation, the court will allow _____. |
| | A) | damages |
| | B) | rescission and damages |
| | C) | rescission |
| | D) | rescission, damages, and an injunction |
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| 5 | |
Beth contracts to sell Minda merchandise stored in a warehouse. Unknown to either person, the warehouse burned the night before the contract was made, totally destroying the merchandise. In this situation, Minda _____. |
| | A) | is bound to the contract |
| | B) | may successfully assert fraud |
| | C) | may successfully assert fraud and cancel the contract |
| | D) | may cancel the contract |
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| 6 | |
Duress is characterized by _____ while undue influence is characterized by _____. What word goes in each blank in order? |
| | A) | threats, pressure |
| | B) | pressure, threats |
| | C) | emotional appeals, mistaken beliefs |
| | D) | confusion, indecision |
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| 7 | |
James operates the only gasoline station along a one hundred mile stretch of desert road and charges four times the normal price for gasoline. A motorist purchasing gasoline from James _____. |
| | A) | experiences wrongful economic duress |
| | B) | experiences wrongful emotional duress |
| | C) | experiences wrongful undue influence |
| | D) | experiences no duress or undue influence |
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| 8 | |
Bethany is an exceptionally persuasive sales representative. After signing a contract, customers frequently feel that they were swept along without a meanful way to say no. Bethany has engaged in _____. |
| | A) | undue influence |
| | B) | duress |
| | C) | both undue influence and duress |
| | D) | neither undue influence or duress |
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| 9 | |
A fiduciary relationship involves _____. |
| | A) | trust |
| | B) | dependence |
| | C) | trust and dependence |
| | D) | trust, dependence, and domination |
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| 10 | |
Aza and Ersaid both believe that a particular horse descended from a Kentucky Derby winner when in fact the horse descended from a horse that came in last in the Kentucky Derby. This is most clearly an example of _____. |
| | A) | mistake as to existence |
| | B) | mistake as to value |
| | C) | mistake as to description |
| | D) | mistake of law |
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