Harry Said to Marge,"I Have a Ring Once Owned by Marilyn

question 36

Multiple Choice

Harry said to Marge,"I have a ring once owned by Marilyn Monroe.Would you like to buy it for $500?" Marge pays for the ring,but the next day a friend tells her that Harry had recently purchased the ring at a local department store.Marge enjoys wearing the ring and wears it constantly for twelve months.Finally,she goes to Harry and says,"Here is the ring you lied about.Give me my $500." Most likely Marge will:

• A) get her money back since Harry's representation was fraudulent.
• B) not get her money back since she should have investigated the facts about the ring more carefully.
• C) get her money back since she is a good faith purchaser of merchandise.
• D) not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.

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Definitions:

Tax Cases

These are legal cases that deal with the interpretation and application of tax laws, resolved in various courts, including Tax Court, Federal District Courts, and the Supreme Court.

U.S. Tax Court

A federal court that provides taxpayers a forum to dispute tax deficiencies assessed by the IRS before paying the disputed amount.

Tax Rate Structure

A scheme that defines how tax rates progress based on variables such as income level, corporate profits, or other bases.

Proportional

Relating to a relationship between variables where they increase or decrease at the same rate.