ALTERNATE CASE PROBLEM ANSWERS
CHAPTER 14
MISTAKES, FRAUD, AND
VOLUNTARY CONSENT
14-1A. Duress
(Chapter 14—Pages 283–284)
Schmalz should not succeed. To claim duress in avoiding a contract, a person must be so oppressed
14-2A. Fraudulent misrepresentation
(Chapter 14—Pages 281–282 & 283–284)
Mrs. Adams cannot rescind her contract based on fraud. Fraud is the intentional misrepresentation or
suppression of the truth made to obtain an unjust advantage for one party. A claim of fraud also
B-60 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 14
personal circumstance of a party must be taken into account in determining reasonableness of fear,
14-3A. Duress
(Chapter 14—Pages 283–284)
A contract is voidable on the grounds of economic duress when it is established that the party making
14-4A. Fraudulent misrepresentation
(Chapter 14—Pages 277–278)
A jury awarded more than $740,000 in damages to Rickert on his claim of fraud, and UPS appealed to a
state intermediate appellate court, which affirmed the award. UPS appealed to the Kentucky Supreme
14-5A. Fraudulent misrepresentation
(Chapter 14—Pages 277–278)
No. The court held that Nosrat was liable on the note because with ordinary diligence he could have
B-62 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 14
14-6A. Assent
(Chapter 14—Pages 278–280)
Lorenzo based her suit against Noel on fraud—misrepresentation by nondisclosure. The court granted
14-7A. Mistake
(Chapter 14—Page 277)
The court held that Lanci was entitled to void the settlement agreement. Lanci’s mistake as to the
14-8A. Misrepresentation
(Chapter 14—Pages 277–278)
The court did not hold McConkey liable and dismissed M&D’s claims. M&D appealed. The state
intermediate appellate court affirmed the judgment of the lower court. The appellate court concluded
14-9A. A QUESTION OF ETHICS
1. Whatever your answer is to this question, in the eyes of the court Jacobsen had no cause of
action. The judges felt that Jacobsen simply “chose to judge Columbia’s education system by the shifting
2. A university has a contractual duty to its students to abide by the policies and procedures
3. The equitable maxims that are probably most relevant to Jacobsen’s case are the first and
third maxims listed in Chapter 1: “Whoever seeks equity must do equity” and “One seeking the aid of an
equity court must come to the court with clean hands.” Clearly, Jacobsen received benefits from the