BUS 311 Week 2 Quiz Chapter 008

1. Genuineness, or reality of an agreement, is said to be present in a contract when there is a true meeting of the minds.

BT: Knowledge

PO: 1

True False

1. A fraud charge can be proven only if it is available in writing, but not if it is spoken, by acts or conduct.

BT: Knowledge

PO: 2

True False

1. If there is any misunderstanding or if any force or deception is used by either party to obtain the necessary agreement of the other party, the contract is voidable, and may be disaffirmed at the option of the injured party.

BT: Knowledge

PO: 1

True False

1. Misdemeanor is the intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party.

BT: Knowledge

PO: 2

True False

1. Puffing is considered a mere expression of opinion that refers to generalities.

BT: Knowledge

PO: 2

True False

1. There is no remedy for the injured party under fraud and misrepresentation.

BT: Knowledge

PO: 3

True False

1. In the eyes of the law, a misrepresentation is a belief that is not in accord with the facts.

BT: Knowledge

PO: 4

True False

1. Mistakes relating to contracts may be concerned with the nature of the subject matter or the quality of the subject matter.

BT: Knowledge

PO: 4

True False

1. For a contract to be dissolved because of a mistake, the law usually requires that only one of the parties has to be part of the mistake.

BT: Knowledge

PO: 4

True False

1. A person who has power and abuses it to control the actions of another person on the basis of a special or confidential relationship commits fraud.

BT: Comprehension

PO: 5

True False

1. A physician may have the power to control the actions of his patients because of a special or confidential relationship.

BT: Comprehension

PO: 5

True False

1. Duress is the act of applying unlawful or improper pressure or influence to a person in order to gain his agreement to a contract.

BT: Knowledge

PO: 6

True False

1. The "take-it-or-leave-it" contracts are quite common and are normally unenforceable.

BT: Knowledge

PO: 7

True False

1. The pressure under duress only take the form of a threat of bodily harm to an individual or to his family, but not the threat of serious loss or damage to his property.

BT: Knowledge

PO: 6

True False

1. When the UCC was written, it was intended that the unconscionable clause would apply only to sales of goods.

BT: Knowledge

PO: 8

True False

1. Genuineness, or reality, of agreement is said to be present in a contract when there is:

A. true meeting of minds.

B. knowledge of falsity.

C. puffing.

D. duress.

1. For the injured party to claim fraud, he or she must prove all of the following of the statement or act EXCEPT that it:

A. was a misstatement or nondisclosure of a material fact.

B. was made with no knowledge of its falsity or with reckless disregard of its truth.

C. was relied on by the injured party.

D. resulted in loss to the injured party.

1. If agreement of either party is obtained by fraud, misrepresentation, mistake, undue influence, or duress, or if the contract is one of adhesion, or is unconscionable, a(n):

A. executed contract results.

B. valid contract results.

C. void contract results.

D. voidable contract results.

1. When the misstatement is made knowingly or recklessly, it amounts to:

A. fraud.

B. mistake.

C. misrepresentation.

D. duress.

1. The intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party amounts to:

A. fraud.

B. duress.

C. mistake.

D. misrepresentation.

1. The law allows for a certain amount of "sales talk," or puffing, that is not considered as:

A. undue influence.

B. duress.

C. fraudulent.

D. misrepresentation.

1. Puffing is also considered:

A. a mistake.

B. dealer's talk.

C. misrepresentation.

D. fraud.

1. The unintentional misstatement or nondisclosure of a material fact that results in inducing another to enter into an agreement to his or her loss is known as:

A. fraud.

B. duress.

C. mistake.

D. misrepresentation.

1. An injured party who can successfully prove fraud may have the remedy to:

A. claim specific performance.

B. extend the contract.

C. accept the contract.

D. bring suit for damages.

1. If a party can prove only misrepresentation, the remedy available to the injured party is to:

A. extend the contract.

B. bring suit for damages.

C. accept the contract.

D. cancel the contract.

1. Randolf, a wealthy connoisseur of arts, was invited to an art exhibition. He became very interested in one of the showcased art exhibits, and approached the manager to buy the piece. While he was interested in the painting of the catalogue number 1201, the art gallery's manager mistakenly assumed he was interested in another piece. When it was the time to complete the transaction, the manager realized that he had instead sold and delivered the wrong painting, and immediately clarified this with Randolf. In this instance, the contract can be canceled by either party for:

A. mutual mistake.

B. unilateral mistake.

C. negligence.

D. misrepresentation.

1. The law makes it clear that the mistaken belief must concern a(n):

A. precedent.

B. existing fact.

C. belief.

D. overruled law.

1. The court decisions involving mistakes in contracts are often complex and the courts attempt to determine whether the mistake was:

A. intentional.

B. unintentional.

C. unilateral or mutual.

D. unilateral and misrepresented.

1. If the mistake in the contract is made by only one party, then it amounts to:

A. mutual mistake.

B. intentional mistake.

C. unilateral mistake.

D. conditional mistake.

1. If the mistake in the contract is made by both parties then it amounts to:

A. mutual mistake.

B. unilateral mistake.

C. intentional mistake.

D. conditional mistake.

1. For a contract to be dissolved because of a mistake, the law usually requires that both the parties be a part of the:

A. mistake.

B. duress.

C. misunderstanding.

D. undue influence.

1. Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. If this power is improperly used to his or her personal advantage, then it amounts to:

A. mistake.

B. misrepresentation.

C. undue influence.

D. duress.

1. Sometimes a person has the power to control the actions of another because of a special or confidential relationship to that person. Such relationships are found in all of the following, EXCEPT that of a(n):

A. employer and an employee.

B. physician or nurse and a patient.

C. attorney and a client.

D. client and vendor.

1. The act of applying unlawful or improper pressure or influence to a person in order to gain his or her agreement to a contract is known as:

A. fraud.

B. duress.

C. undue influence.

D. mistake.

1. Contracts that involve parties of unequal bargaining power are often considered:

A. unconscionable.

B. unforgivable.

C. inadequate.

D. as contracts of adhesion.

1. When threats are used to force someone to enter into a contract, the agreement may be dissolved by:

A. the injured party.

B. a court order.

C. a third party.

D. an arbitrator.

1. Insurance policies may be classified as a contract of:

A. service.

B. adhesion.

C. duress.

D. undue influence.

1. Checkroom and luggage receipts are examples of:

A. simple contracts.

B. contracts of adhesion.

C. unconscionable contracts.

D. expressed contracts.

1. Contracts that are shockingly unfair and unjust are known as:

A. unconscionable contracts.

B. unrequited contracts.

C. inadequate contracts.

D. contracts of adhesion.

1. While courts have long been reluctant to uphold unconscionable contract, more recently, however, the UCC has made such contracts even less likely to be:

A. enforced.

B. reduced into writing.

C. agreed.

D. notified.

1. The provision, "If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made, the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result." This was stated under which provision of law?

A. UCC 2-300

B. UCC 2-301

C. UCC 2-302

D. UCC 2-303