BUSINESS LAW CHAPTER 7 TEST REVIEW
Punitive damages are a form of punishment.
true
All persons are presumed to know the law.
true
Rescission is conducted suggesting you intend to be bound by the contract.
false
The absence of genuine assent will make a contract voidable.
true
Unilateral mistakes create the right to rescind or void the contract.
false
Committing an act of violence to obtain a signature on a written contract is
duress.
true
In some states, the contract is still valid if the mutual mistake is about the
applicable law.
true
One party to contract is in the position of trust and wrongfully dominates the
other is undue influence.
true
Material facts are important facts that influence the parties' decisions about the
contract.
true
Signing a contract written in technical terminology that you don't understand will
not bind you.
false
In order to be effective, a rescission must be ________.
prompt
An untrue statement is not material if ________.
the statement was a honest opinion
A genuine agreement may be lacking due to ______.
all of these
Contracts entered into as a result of misrepresentation or fraud are voidable by
____________.
the injured party
In economic duress cases, the court looks at _________.
alternative to threat and party
Disclosure is required when a statement _______________.
both a and b
Key elements in undue influence are unfair persuasion and ________.
relationship
In misrepresentation, the statement must be one of ______.
fact
Punitive damages are a form of punishment.
true
All persons are presumed to know the law.
true
Rescission is conducted suggesting you intend to be bound by the contract.
false
The absence of genuine assent will make a contract voidable.
true
Unilateral mistakes create the right to rescind or void the contract.
false
Committing an act of violence to obtain a signature on a written contract is
duress.
true
In some states, the contract is still valid if the mutual mistake is about the
applicable law.
true
One party to contract is in the position of trust and wrongfully dominates the
other is undue influence.
true
Material facts are important facts that influence the parties' decisions about the
contract.
true
Signing a contract written in technical terminology that you don't understand will
not bind you.
false
In order to be effective, a rescission must be ________.
prompt
An untrue statement is not material if ________.
the statement was a honest opinion
A genuine agreement may be lacking due to ______.
all of these
Contracts entered into as a result of misrepresentation or fraud are voidable by
____________.
the injured party
In economic duress cases, the court looks at _________.
alternative to threat and party
Disclosure is required when a statement _______________.
both a and b
Key elements in undue influence are unfair persuasion and ________.
relationship
In misrepresentation, the statement must be one of ______.
fact
