It Came to Your Attention That Your Great-Grandmother Had Signed

question 161

Multiple Choice

It came to your attention that your great-grandmother had signed a contract pursuant to which she would be paying $5,000 for an electronic organ that retails in reputable stores for $3,000. Furthermore, the interest being charged is 18%, even though today's rate fell to a 20-year low. This debt is totally out of line with her pension income. It is apparent that she was misled by the door-to-door salesman who came to her place. On these facts, which of the following laws is the most likely to help her?

• A) Both unconscionability and misrepresentation
• B) Non est factum
• C) Undue influence only
• D) Misrepresentation only
• E) Unconscionability only

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends.

Book Value

The value of an asset as recorded on the company's balance sheet, calculated as the cost of the asset minus any depreciation.

Outstanding Bonds

Bonds issued by a company that are currently still held by investors and have not yet been redeemed.

Purchase

The act of buying goods or services, typically in exchange for money.