Which of the Following Constitutes a Misrepresentation That Would Not

question 114

Multiple Choice

Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?

• A) The seller concealed the broken drawer of the desk from the buyer. He would not be able to see it until he got it home.
• B) The seller persuaded the buyer to buy the car by misrepresenting it as having just been serviced and passing the air care test. Neither had been done, but the seller honestly believed both had been done.
• C) The seller was persuaded to buy the car by a misrepresentation that it had the fewest repairs of any car of its class. After the buyer learned of the truth, he kept the car for three weeks to get some benefit from it before taking it back.
• D) A man who contracted for an insurance policy did not state on the application form that he had been treated for cancer. He died from the cancer two months later.
• E) None of the above.

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Definitions:

Common Resources

Resources that are accessible to all members of a society but are susceptible to overutilization and depletion.

Private Good

A product or service that is excludable and rival in consumption, meaning only those who pay for it can consume it, and one person’s consumption prevents another's.

Common Resource

A type of good that is non-excludable but rivalrous, meaning it's available to everyone but its consumption by one individual diminishes its availability for others.

Tragedy of the Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is not in anyone's long-term interest.