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:

Utility

A measure of satisfaction or pleasure obtained from consuming goods and services.

Indifference Curves

Graphical representations in economics that show different bundles of goods between which a consumer is indifferent, meaning that the consumer has no preference for one bundle over another.

Concave

A shape or curve that is curved inward, resembling the interior of a circle or sphere, often used in the context of economic functions.

Tangency

A point at which two lines or curves meet without intersecting, often used in economics to find points of optimization, such as in budget constraints or indifference curves.