When Gary Went into Computer Heaven, Ltd

question 49

Multiple Choice

When Gary went into Computer Heaven, Ltd. to get a better manual for the program he was trying to master, he was caught by a demonstration of a computer created by Next, Mr. Job's new firm. He was fascinated by its performance. The salesman, Ross, told Gary that he should have this machine; that "it was the last computer, no other will ever be better"; that "UBC, Simon Fraser, and BCIT just ordered over 1000 of them"; that he only had "a few left and the demand is so great it will take almost a year for the next shipment to arrive." When Gary said he needed a computer with at least 100 Gigabytes, Ross said this model had 250 Gigabytes. Gary was persuaded and contracted for it. Later Gary learned that every statement made by the salesman Ross was untrue, including the statement about the memory capacity; the model only had 40 Gigabytes. On these facts, which of the following is true?

• A) Merely the exaggerated claim "it was the last computer, no other will ever be better" is enough, according to the case law, to allow Gary to get out of the contract.
• B) Such misrepresentations could only result in contractual remedies, legal or equitable, but not in tort remedies.
• C) Statements that induced Gary to contract, but that are not the terms of the contract, are not significant enough for the courts to award a remedy by case law or by statute.
• D) Gary could be awarded the equitable remedy of rescission even if Ross, the salesman, honestly believed everything he said was true.
• E) Only if Ross, the salesman, knew that all the statements he made were false could Gary get a remedy.

---

Definitions:

Guinness Book

A reference book published annually, listing world records both of human achievements and the extremes of the natural world.

Tertiary

Refers to the third level or stage in a sequence; in education, it commonly relates to post-secondary education such as universities and colleges.

Quaternary

Relating to the fourth stage or division, often used in context of geological periods or the sector of the economy that deals with knowledge-based activities.

Historiography

The study of the methods and principles through which history is written, including the different perspectives and interpretations.