BUL 3310 FSU Bailey Unit 6 Exam 2026
Questions and Answers
A party who misstates an important fact during contract negotiations has an
affirmative duty to correct that misstatement before entering into the contract. -
Correct answer-True
A party who enters into a contract with a minor has the same right as the minor to
disaffirm the contract. - Correct answer-False
Mike, a minor, bought a car from Used Car Lot for 6,000. Two months before he
turned 18, the age of majority in his state, Mike decided he didn't want the car
anymore and returned it to Used Car Lot. Mike had put 50,000 miles on the car.
Applying the law followed by the majority of states, please select the statement
that best describes Mike's rights in these circumstances. - Correct answer-Mike
would be entitled to get back the full 6,000 purchase price
For which of the following purchases would a minor be liable to the seller for the
fair value of the goods? - Correct answer-Medicine
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, Having lost his job in the recent recession and facing property taxes that were past
due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith
purchaser for value at a price that was well below its market value. Ed now regrets
this decision and asks if he has any legal basis for rescinding the contract. Please
advise Ed. - Correct answer-No, this was a valid bargained for exchange with a
good faith purchaser for value
Which of the following elements is present in fraudulent misrepresentation but not
in innocent misrepresentation? - Correct answer-Scienter
For which of the following purchases could a minor disaffirm the contract and get
the full purchase price back? - Correct answer-iPod
Innocent misrepresentation can be the basis for the injured party to rescind the
contract. - Correct answer-True
A unilateral mistake of value is grounds for rescinding the contract. - Correct
answer-False
The document issued by a common carrier evidencing receipt of goods for
shipment is an __________________. - Correct answer-Bill of lading
Farmers are Article 2 "merchants "in some states and "non-merchants" in other
states. - Correct answer-True
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Questions and Answers
A party who misstates an important fact during contract negotiations has an
affirmative duty to correct that misstatement before entering into the contract. -
Correct answer-True
A party who enters into a contract with a minor has the same right as the minor to
disaffirm the contract. - Correct answer-False
Mike, a minor, bought a car from Used Car Lot for 6,000. Two months before he
turned 18, the age of majority in his state, Mike decided he didn't want the car
anymore and returned it to Used Car Lot. Mike had put 50,000 miles on the car.
Applying the law followed by the majority of states, please select the statement
that best describes Mike's rights in these circumstances. - Correct answer-Mike
would be entitled to get back the full 6,000 purchase price
For which of the following purchases would a minor be liable to the seller for the
fair value of the goods? - Correct answer-Medicine
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Having lost his job in the recent recession and facing property taxes that were past
due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith
purchaser for value at a price that was well below its market value. Ed now regrets
this decision and asks if he has any legal basis for rescinding the contract. Please
advise Ed. - Correct answer-No, this was a valid bargained for exchange with a
good faith purchaser for value
Which of the following elements is present in fraudulent misrepresentation but not
in innocent misrepresentation? - Correct answer-Scienter
For which of the following purchases could a minor disaffirm the contract and get
the full purchase price back? - Correct answer-iPod
Innocent misrepresentation can be the basis for the injured party to rescind the
contract. - Correct answer-True
A unilateral mistake of value is grounds for rescinding the contract. - Correct
answer-False
The document issued by a common carrier evidencing receipt of goods for
shipment is an __________________. - Correct answer-Bill of lading
Farmers are Article 2 "merchants "in some states and "non-merchants" in other
states. - Correct answer-True
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
