Tom Buys a Piece of Land Based on the Innocent

question 14

Multiple Choice

Tom buys a piece of land based on the innocent misrepresentation of a real estate agent. He can get rescission of the contract

• A) if requested within 48 hours of the discovery.
• B) up until the final closing date of the sale.
• C) as long as it's after the transfer of title.
• D) as well as receive damages, since this is the sale of real property.
• E) but only up until the time a mortgage is placed on the land.

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Definitions:

Scale of Operation

The size at which a company or factory operates, often impacting its production efficiency and costs.

Long Run

pertains to a time period in economics during which all factors of production and costs are variable, allowing for full adjustment to any change.

Diminishing Returns

A principle stating that as one input variable is increased, there will be a point at which the additions of output will begin to decrease, holding all other inputs constant.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm operates at higher levels of output.