LEG 100 Week 5 Quiz

Week 5 Quiz 1

Fraudulent but innocent misrepresentation permits the injured party to rescind a contract.

Ethel's Exercise World plans to order three weight machines from Pete's Push, Pedal and Pull, Inc. for a total of $15,000. Pete's demands that Ethel's friend, Moneybags, a wealthy independent businesswoman (not connected with Ethel's business in any way) promise to pay Pete's for the three machines if Ethel's Exercise World does not. Which of the promises in this problem must be in writing to be enforceable?

An exculpatory clause is generally unenforceable when

When Myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate?

Barbara, a skilled engineer, was hired at Mainco Enterprises. She was asked to sign a non-compete clause limiting future employment if she left Mainco. A court would be likely to enforce the non-compete clause if it was put into place to protect trade secrets or confidential information.

A person who is mentally impaired generally can create only __________ contracts.

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

Which of the following statements, if made by a seller who knows the statement to be untruthful, would NOT be misrepresentation of material fact resulting in a cause of action for fraud?

If an offer specifies no time limit in which to accept,