BUL 3310 Unit 6 Exam 2026 Questions
and Answers
A bilateral mistake of fact is grounds for rescinding the contract.
-True
-False - Correct answer-True
A seller who knows that his property has a defect not discoverable by the buyer
will be liable for fraudulent misrepresentation if he does not disclose the defect.
-True
-False - Correct answer-True
Punitive damages may be awarded to victims of fraudulent misrepresentation.
-True
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,-False - Correct answer-True
If a minor ratifies a contract before the age of majority, he gives up the right to
avoid the contract.
-True
-False - Correct answer-False
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith
purchaser for value (GFP). Under the Uniform Commercial Code, Buyer took
____________title from Kevin, and transferred _________________title to the
GFP.
-Good-----------------------------------Good
-Voidable-------------------------------Good
-Voidable-------------------------------Voidable
-Void-------------------------------------Good - Correct answer-Voidable-----------------
--------------Good
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,The purpose of reformation is to correct the written contract to reflect the actual
intentions of the parties.
-True
-False - Correct answer-True
Any person who occupies a position of trust and confidence in relation to another
person or his property is a trustee.
-True
-False - Correct answer-False
Scienter includes not only actual knowledge that a statement is false, but also
reckless disregard for whether the statement is true or false.
-True
-False - Correct answer-True
Minors may only avoid executory, not executed, contracts.
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, -True
-False - Correct answer-False
Which of the following elements is present in fraudulent misrepresentation but not
in innocent misrepresentation?
-Reasonable reliance by the innocent party
-Scienter
-Misrepresentation of a material fact
-Economic damage to the innocent party - Correct answer-Scienter
Which of the following statements is false about sale or return contracts?
-The goods must be used as consumer goods.
-Buyer has the risk of loss until the goods are sold
-Buyer has the risk of loss during shipment of the goods back to the seller.
-The goods are subject to claims by the buyers creditors while they are in his
possession. - Correct answer-The goods must be used as consumer goods.
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and Answers
A bilateral mistake of fact is grounds for rescinding the contract.
-True
-False - Correct answer-True
A seller who knows that his property has a defect not discoverable by the buyer
will be liable for fraudulent misrepresentation if he does not disclose the defect.
-True
-False - Correct answer-True
Punitive damages may be awarded to victims of fraudulent misrepresentation.
-True
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,-False - Correct answer-True
If a minor ratifies a contract before the age of majority, he gives up the right to
avoid the contract.
-True
-False - Correct answer-False
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith
purchaser for value (GFP). Under the Uniform Commercial Code, Buyer took
____________title from Kevin, and transferred _________________title to the
GFP.
-Good-----------------------------------Good
-Voidable-------------------------------Good
-Voidable-------------------------------Voidable
-Void-------------------------------------Good - Correct answer-Voidable-----------------
--------------Good
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,The purpose of reformation is to correct the written contract to reflect the actual
intentions of the parties.
-True
-False - Correct answer-True
Any person who occupies a position of trust and confidence in relation to another
person or his property is a trustee.
-True
-False - Correct answer-False
Scienter includes not only actual knowledge that a statement is false, but also
reckless disregard for whether the statement is true or false.
-True
-False - Correct answer-True
Minors may only avoid executory, not executed, contracts.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, -True
-False - Correct answer-False
Which of the following elements is present in fraudulent misrepresentation but not
in innocent misrepresentation?
-Reasonable reliance by the innocent party
-Scienter
-Misrepresentation of a material fact
-Economic damage to the innocent party - Correct answer-Scienter
Which of the following statements is false about sale or return contracts?
-The goods must be used as consumer goods.
-Buyer has the risk of loss until the goods are sold
-Buyer has the risk of loss during shipment of the goods back to the seller.
-The goods are subject to claims by the buyers creditors while they are in his
possession. - Correct answer-The goods must be used as consumer goods.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
