Which of the Following Is Generally True About State Statutes

question 60

Multiple Choice

Which of the following is generally true about state statutes establishing mechanic's and materialman's liens?

• A)Most of them require the mechanics and the materialmen to sign a deed of trust.
• B)They require that work be done in the performance of a contract to improve real property.
• C)They do not allow subrogation by mechanics and materialmen.
• D)They require mechanics and materialmen to enter into a quasi contract with the contractor.

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Definitions:

Merchandise

Goods that are bought and sold in business, often synonymous with stock or inventory.

Fraudulent Misrepresentation

A wrongful statement, action, or concealment, pertinent to the subject matter of a contract, that is knowingly made to damage the other party.

Sales Puffery

Persuasive words or exaggerated arguments made by salespeople to induce customers to buy their product. As long as such comments are reserved to opinion and do not misstate facts, they are not actionable as fraud, even if they turn out to be grossly in error. Also called puffery.

Bait-and-Switch

A deceptive marketing strategy where a seller advertises a product at a low price to attract customers, then persuades them to buy a more expensive item.