Miles Purchased a Motorcycle from LB Cycles

question 14

Multiple Choice

Miles purchased a motorcycle from LB Cycles.He later learned that the salesman had made misrepresentations to induce him to make the purchase.Under UCC Section 2-721,can Miles rescind the contract?

• A)Yes, but only if the misrepresentation was fraudulent.
• B)Yes, but he cannot sue for damages if the misrepresentation was innocent.
• C)Yes, and he can sue for damages whether the misrepresentation was fraudulent or innocent.
• D)No, as the contract has been fully executed.

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Definitions:

Labor Supplied

Represents the total hours that workers are willing and able to work at a given wage rate.

Leisure

free time when individuals are not working, available for relaxation or activities of personal choice.

Normal Good

A good for which demand increases as the income of consumers increases and vice versa.

Demand for Leisure

The desire for free time in which one can enjoy personal activities outside of work.