Jenny Went to the Store and Asked to See a Bluetooth

question 87

Multiple Choice

Jenny went to the store and asked to see a Bluetooth headset. The salesman brought out a set that he said had all the features that she wanted. After looking at the price tag and little else, she said she would think about it. The salesman said that this was the most popular model sold, that they sold 1000 of them during the World Series alone, that it had the highest rating in Consumer Reports, and that he only had that one left. Jenny bought it. Later she found out that all the statements made to her by the salesman were False, including the statement that the headset had all the features that she wanted, because it did not have noise suppression. Which of the following is true?

• A) Jenny could obtain the remedy of rescission only if the statements made to induce her to contract were fraudulent.
• B) The statements of the salesman are fraudulent only if the salesman knew they were False.
• C) Jenny would only have a remedy for breach of contract.
• D) The equitable remedy of rescission is available only if Jenny were able to restore the headset to the seller.
• E) Jenny could return this headset to the seller only if she could prove undue influence.

---

Definitions:

Plantwide Rate

A single, uniform overhead absorption rate used throughout an entire factory or plant, applied to all units irrespective of the department in which the costs were incurred.

Product Costs

Expenses directly associated with the manufacture of a product, including materials, labor, and overhead.

Factory Overhead Allocated

The portion of factory overhead costs assigned to each unit of production, based on a predetermined formula.

Multiple Production

Involves producing multiple products or variants from the same base of raw materials or through similar production processes, aimed at diversification and efficient resource use.