Burt,a Mentally Impaired Person,is Asked by Carl to Sign a Piece

question 35

Multiple Choice

Burt,a mentally impaired person,is asked by Carl to sign a piece of pa?per that Carl says is an autograph book.In fact,the document is a note.If later sued on the note by an HDC

• A)Burt must pay the note.
• B)Burt's best defense would be fraud in the execution.
• C)Burt's best defense would be fraud in the inducement.
• D)Burt's best defense would be mistake.

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Definitions:

Inelastic Demand

A situation in which the demand for a product does not change much in response to price changes.

Close Substitutes

Products that serve similar functions or needs and can easily replace one another in the eyes of the consumer.

Complements

Products or services that are used together, such that the demand for one increases the demand for the other.

Current Margin

The present profit margin; the difference between the sales revenue and the cost of goods sold at the current time.