Assuming That Lucy Innocently Made a Misrepresentation Regarding the Spring

question 13

Multiple Choice

Assuming that Lucy innocently made a misrepresentation regarding the spring running through the corner of the farm with no reason to believe that was incorrect,which of the following is true,considering only the lack of a spring issue,if Marcy does not want to go through with the sale?

• A) Marcy may rescind the contract and recover compensatory damages.
• B) Marcy may rescind the contract, but she may not recover damages.
• C) Marcy may sue for damages, but she may not rescind the contract.
• D) Marcy may rescind the contract, or she may keep the contract and sue for damages.
• E) Marcy has no remedy based on an innocent misrepresentation based on the theory that she should have checked more closely before entering into the contract.

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Definitions:

Standardized Normal Value

A value derived from the process of transforming a data point to fit the normal distribution with a mean of 0 and a variance of 1.

Z-value

A statistical metric indicating how many standard deviations away from the mean a specific data point lies.

Random Variable

A random variable is a variable whose values depend on outcomes of a random phenomenon.

Standard Normal Probability Distribution

A probability distribution that has a mean of 0 and a standard deviation of 1, used in statistics to represent standardized values of a dataset.