Chapter 7 Multiple Choice Questions

Misrepresentation

Quiz Content

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. Fraudulent misrepresentation is established when a person makes a false statement that he knows or believes is not true, or makes recklessly, not caring whether it is true or not.

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. A party makes a negligent misstatement when he makes a false statement without ……… grounds for believing it to be true.

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. Fiona and Paul negotiate over the sale of a computer. Paul tells Pauline, Fiona's friend, who is a computer expert and who Paul knows has been advising Fiona on the sale, that the computer has never crashed and never needed repair. Pauline tells Fiona, and Fiona relies on this information and buys the computer. It crashes on first use and Fiona calls out a technician who discovers that the hard drive has already been replaced once; the diagnostic history reveals that the computer has a fault that causes it to crash on a regular basis.

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. Which of the following types of contract provide an exception to the rule that silence or non-disclosure does not give rise to liability? Please select all that apply.

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. Which of the following are essential requirements of an actionable misrepresentation? Please select all that apply.

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. Which of the following may give rise to a statement of fact? Please select all that apply.

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. (False) statements of law will now be automatically treated as misrepresentations, following Pankhania v Hackney LBC (2002).

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. Rescission is a self-help remedy in that a party can choose to rescind a contract without the need for a court order.

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. Section … of the Misrepresentation Act 1967 confers a right to damages where the representee proves that he entered into the contract in reliance on the misrepresentation, and the misrepresentor fails to prove that he had reasonable grounds for believing that his statement was true.

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. Damages for fraudulent misrepresentation may be claimed for losses caused by the fraudulent inducement, even though they are not reasonably foreseeable.

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. An advertising slogan, not intended to be taken seriously, is known as a 'mere ………'.

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. Which of the following are bars to rescission? Please select all that apply.

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