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

question 68

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 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 statement was fraudulent.
• B) not get her money back since she should have investigated the facts about the ring more carefully.
• C) not 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.

Analyze the legal liabilities and responsibilities in situations of negligence within the scope of employment.

Comprehend the duty of accounting an agent owes to a principal.

Identify requirements for agency by ratification and the efficacy of ratification.

Evaluate scenarios to determine liability in agency contexts.

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Definitions:

Fraudulently

Acting with intent to deceive or cheat, often to gain an unfair or unlawful advantage.

Mutual Mistake

A situation where both parties to a contract have an incorrect belief about an essential fact of the contract at the time of agreement.

Unconscionability

Describes a contract or term within a contract deemed so unfair or oppressive to one party that no reasonable or informed person would agree to it.

Risk of Loss

The responsibility for damage or financial burden that may arise from the destruction, damage, or loss of goods.