Mark Was Shopping for a Used Car in February

question 104

Multiple Choice

Mark was shopping for a used car in February.He went to Auto Mega World and test drove a used 2001 Tiger XL.While driving the car,he looked at the climate control center and noticed that the temperature lever was marked "cold" at one end in blue and "hot" in red at the other end.Mark assumed that the "cold" marking meant that the car had air conditioning.Mark wanted to finally have an air-conditioned car.He did not discuss air conditioning in any way with the salesperson.Mark bought the car.When Mark was showing off his new car to friends,one of them pointed out to him that the car was not air-conditioned.In this circumstance:

• A) Mark can avoid the contract on the basis of mutual mistake.
• B) Mark can avoid the contract on the basis of unilateral mistake.
• C) Mark can avoid the contract on the basis of fraud in the inducement.
• D) Mark cannot avoid the contract on the basis of his unilateral mistake.
• E) Mark cannot avoid the contract because this is a mistake of value.

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Definitions:

External Users

Individuals or entities outside of a company who use its financial statements for decision-making, such as investors, creditors, and regulatory agencies.

Ethical Behavior

Conduct that is consistent with what society, businesses, and individuals typically think are good values.

Fundamental Business

Refers to the basic concepts, principles, and practices that form the foundation of a company's operations and strategic objectives.

Financial Information

Data related to the financial performance and financial position of an entity, including income statements, balance sheets, and cash flow statements.