Len Was Behind in His Work at the Office

question 64

Multiple Choice

Len was behind in his work at the office. He decided to go in for a few hours on Sunday to catch up. He asked a secretary to come in for four hours. He turned on his office TV. Just then his secretary came in and asked him to sign four letters that she said concerned general office matters. He carelessly signed them without taking his eyes off the TV screen. One of the "letters" was, in fact, a cheque for $500 payable to the secretary. The secretary cashed the cheque at her bank, and when her bank presented the cheque for payment, Len instructed his bank not to honour it. He said that he had been tricked and that his signing it was all a big mistake. On these facts, which of the following is true?

• A) He could avoid his obligation on the cheque on the basis of duress.
• B) He could avoid his obligation on the cheque on the basis of unconscionability.
• C) Because Len did not know what he was signing, he cannot be held liable.
• D) Len's carelessness in failing to read what he was signing will likely defeat any claim of non est factum.
• E) Undue influence would be his best defence on these facts.

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Definitions:

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.

Monopolistic Producer

A single producer that has control over the market for a product or service, often characterized by a lack of close substitutes.

Competitive Firm

A company that operates in a market with many competitors, where prices are determined by supply and demand.

Unit Cost

The expenditure associated with creating, storing, and selling a single unit of a particular product or service by a business.