Chapter 15

Question 1

Adhesion contract

Answer 1

A “standard – form“ contract such as that between a large retailer and a consumer, in which the stronger party dictates the terms

Question 2

Innocent misrepresentation

Answer 2

A false statement of fact or an act made in good faith that deceives and causes harm or injury to another

Question 3

Latent defects

Answer 3

A defect that is not obvious or cannot readily be ascertained

Question 4

Negligent misrepresentation

Answer 4

Any manifestation through words or conduct that amount to an untrue statement of fact made in circumstances in which a reasonable and prudent person would not have done (or failed to do) that which led to the misrepresentation. A representation made with an honest believe in it’s truth may still be negligent due to 1) a lack of reasonable care in ascertaining the facts 2) the manner of expression or 3) the absence of the skills or competence required by a particular business or profession

Question 5

Scienter

Answer 5

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive

Question 6

Voluntary consent

Answer 6

Maybe lacking because of a mistake, misrepresentation, undue influence, or duress- in other words because there is no true “meeting of minds”