Foundations Of The Legal Environment Of Business International 2nd Edition By Marianne – Test Bank

Chapter 11: Contracts and Sales: Performance and Remedies

TRUE/FALSE

1. A contract with a minor is voidable at the minor’s option.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: Capacity

2. A contract with a party who has been declared incompetent is voidable.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Capacity

3. Minors are liable for the reasonable value of necessaries.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: Capacity

4. Misrepresentation must be fraudulent before rescission can be permitted.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Misrepresentation

5. Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Misrepresentation

6. “This shirt is 100% cotton” is a statement that is puffing.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Puffing

7. Fraud is misrepresentation with intent to mislead or deceive.

ANS: T PTS: 1 NAT: AACSB: Analytic
TOP: Fraud

8. Duress requires proof of physical force.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Duress

9. Scienter is required for misrepresentation.

ANS: F PTS: 1 NAT: AACSB: Analytic
TOP: Misrepresentation

10. Undue influence requires proof of a confidential relationship.

ANS: T PTS: 1 NAT: AACSB: Analytic