SOLVED

51) The reasoning in innocent misrepresentation cases resembles the reasoning in a[n] case. A) Mutual mistake B) Duress C) Negligent misrepresentation D) Fraudulent misrepresentation E) Unilateral mistake 52) As described in the text, which statement is true regarding consumers and Japanese law? A) The Civil Code has more lax requirements regarding fraud than the country’s Consumer Contracts law. B) In order to encourage economic advancement and international investment, the goal is to form the law so that in litigation consumers are at a distinct disadvantage in comparison to businesses. C) Japanese law does not recognize rights of consumers as the buyer must beware. D) A special Consumer Contracts Law was developed to place consumers and businesses on a more equal footing in transactions. E) The goal in regard to consumers is to form the law so that in litigation businesses are at a distinct disadvantage in regard to consumers. [Pet Pig Farm] Jen was interested in buying Monique’s land in order to breed small pet pigs. Jen told Monique that having water on the property was very important although she did not mention to Monique her plan to breed small pigs. Monique assured her that a spring ran through one corner of the property. Therefore, Jen agreed to buy the farm. Jen, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. Monique also agreed to sell Jen a used truck for $5,000. After the contract for the land sale was entered into, Jen had a land survey done, and it was discovered that the spring did not actually run through the corner of Monique’s property. The area in which the spring ran belonged to a neighbor. Additionally, when Monique brought Jen the used truck, Jen said, “That’s not the truck!” It was discovered that Monique, who had two trucks, thought that Jen had bought the older truck although Jen thought she had purchased the newer truck. Jen was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Jen for nuisance. It will cost Jen more than she had agreed to pay Monique in order for Jen to obtain a similar farm that has a spring within its legal boundaries. 53) Assuming that Monique made an innocent misrepresentation regarding the spring running through the corner of the farm with no reason to believe that this item was incorrect, which of the following is true, considering only the lack of a spring issue, if Jen does not want to go through with the sale? A) Jen may rescind the contract, but she may not recover damages. B) Jen may sue for damages, but she may not rescind the contract. C) Jen may rescind the contract and recover compensatory damages. D) Jen has no remedy based on an innocent misrepresentation based on the theory that she should have checked more closely before entering into the contract. E) Jen may rescind the contract, or she may keep the contract and sue for damages. 54) Assuming that Monique made a fraudulent misrepresentation regarding the spring running through the corner of the farm knowing the statement was not correct, which of the following is true, considering only the lack of a spring issue, if Jen does not want to go through with the sale? A) Jen must allow Monique an opportunity to cure, or fix, the problem; and in the event that is not done, she may not rescind the contract although she can sue for damages. B) Jen may rescind the contract, or she may keep the contract and sue for damages. C) Jen may sue for damages, but she may not rescind the contract. D) Jen may rescind the contract, but she may not recover damages. E) Jen may rescind the contract and recover compensatory damages. 55) Which statement would be the result if Jen attempts to rescind the contract and recover damages only on the basis of the neighbor’s objection to a pig farm? A) Jen may rescind the contract and recover damages because Monique made an implied misrepresentation. B) Jen may rescind the contract but may not recover damages because Monique made an implied misrepresentation. C) Jen may not rescind the contract nor may she recover damages because she, Jen, made a unilateral mistake. D) Jen may rescind the contract but may not recover damages because she, Jen, made a unilateral mistake. E) Jen may recover damages but may not rescind the contract because Monique made an implied misrepresentation. Â Â