Jaime Has Agreed to Buy Steve's 4x4 Truck

question 14

Multiple Choice

Jaime has agreed to buy Steve's 4x4 truck.When Steve used the truck last,it ran quite well,so he says "it is in good condition." Unfortunately,the truck sat in the humid weather for some time and the head gasket had rotted away to where the truck won't run.What,legally,should Jaime do?

• A)nothing,since statements of opinion do not amount to misrepresentation
• B)sue for breach; the contract was corrupted by undue influence
• C)promptly demand rescission of the contract
• D)sue for fraudulent misrepresentation
• E)nothing,since this is a clear case of caveat emptor

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Definitions:

Average-Total-Cost Curve

A graphical representation showing how the average total cost of production changes as the quantity of output is altered.

GPA

Grade Point Average, a measure of a student's academic achievement at a college or university, calculated as a numerical average of grades.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of the economy or firm to adjust to changes.

Long Run

A period of time in which all factors of production and costs are variable, allowing for full adjustment to change.