SOLVED

46) Valerie promised to buy Nicole’s car for $2,000. Nicole drew up the contract providing that the exchange would occur the next week. Unfortunately, Nicole was not very good with the keyboard and typed in $1,200 as the price of the car. Valerie noticed that the contract said $1,200, not $2,000, and was very pleased. She signed it without saying anything. When it was time to make the exchange, Valerie gave Nicole $1,200. In response to Nicole’s inquiry regarding an additional $800, Valerie pulled out the contract and showed her that it said $1,200. Nicole immediately responded that she had made a typographical error. Valerie said that there was no mistake on her part because she knew exactly what she was doing and that she thought that Nicole had decided to give her a deal on the car. Which of the following is Nicole’s best argument for a rescission of the contract? A) That because a bilateral contract, as well as a unilateral mistake was involved, most courts would grant relief. B) That duress was involved because of Valerie’s wrongful behavior. C) That a unilateral mistake was involved and that courts typically allow relief in situations involving unilateral mistakes as opposed to mutual mistakes. D) That the mistake resulted from a sale of goods, as opposed to the provision of services, and that courts are more likely to grant relief for a mistake when actual physical work is not involved. E) That the mistake resulted from an accidental clerical error and that it would be unconscionable to enforce the contract. 47) Which of the following was the result in the case in the text, Fantastic Sams Salons Corp. v. PSTEVO, LLC and Jeremy Baker, in which the court considered PSTEVO’s counterclaim for fraudulent misrepresentation with regard to a franchise agreement? A) The counterclaim was dismissed because the disclaimer in the contract prohibited defendants from filing a claim. B) The counterclaim was dismissed even though the disclaimer was invalid. C) It is illegal to force a party to sign a disclaimer about representations made, and thus defendants were allowed to proceed with their counterclaim. D) The disclaimer was invalid and thus defendants were allowed to proceed with their counterclaim. E) The counterclaim was dismissed because, in response to a disclaimer in the contract, defendant affirmed that certain representations were not made. 48) When duress is at issue, the needed for legal consent has been removed by the specifics of the threat. A) Consideration B) Knowledge C) Realization D) Free will E) Specifics  49) One way to prevent a claim of misrepresentation is to add a[n] to a contract. A) Consideration B) Specific Anti-Misrepresentation Clause C) Legal assent D) Scienter clause E) Disclaimer 50) Which of the following occurs in Australia whenever an illegitimate threat is made to hold on to goods unless a payment is made or an agreement is entered into? A) Duress of trade B) Duress of goods C) Duress of merchandise D) Unreasonable duress E) Unconscionable duress  Â