Heather Innocently Misrepresented the Status of a Puppy as Being

question 60

Multiple Choice

Heather innocently misrepresented the status of a puppy as being a full-blooded Pomeranian when actually it was a mixed breed.Brad had contracted to purchase the dog,but the problem was discovered prior to his paying for the dog and picking it up.Nevertheless,Brad was very angry and felt that Heather should have been more careful.He said that he planned to rescind the contract and also sue her for damages to punish her and deter others from behaving similarly.Which of the following is true regarding the remedies available to Brad?

• A)Because Heather violated the contract to provide a full-blooded Pomeranian,Brad is entitled to rescind the contract and to the damages he seeks.
• B)Because Heather violated the contract to provide a full-blooded Pomeranian,Brad is entitled to rescind the contract,but he is not entitled to the damages he seeks.
• C)Because Heather is not guilty of any wrongdoing,Brad is entitled to no remedy,and Heather has an additional thirty days to honor the contract.
• D)Because Heather is not guilty of any wrongdoing,Brad is entitled to no remedy,and Heather has an additional sixty days to honor the contract.
• E)Because Heather is not guilty of any wrongdoing,Brad is entitled to no remedy,and Heather has an additional ninety days to honor the contract.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often entitling shareholders to fixed dividends ahead of common shareholders.

Less Risky

Less risky describes an investment or action that has a lower likelihood of resulting in loss or lower variability in its returns compared to other options.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the open market.

Undervalued

A situation where a securities price is considered to be below its intrinsic value, making it an appealing investment opportunity.