Contract Enforcement: Misrepresentation & Fraud


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question 1 of 3

Doug is leasing a new apartment. The apartment is next door to a nightclub. Doug asks the leasing agent if the apartment is loud at night. The leasing agent has never been to the apartment at night, but tells Doug that he won't be able to hear the club. Doug leases the apartment and, unfortunately, it's very loud at night. What is this an example of?

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1. Ryan sees a chiropractor about a sore back. The chiropractor suggests that Ryan undergo acupuncture treatments, which that chiropractor can administer right away. Ryan asks if the chiropractor is trained in acupuncture and the chiropractor says that he is. Unfortunately, the chiropractor has no acupuncture training and Ryan suffers permanent nerve damage from the botched acupuncture treatment. What is this an example of?

2. In Krysa vs. Payne, Payne intentionally misrepresented facts about the truck they were trying to sell to the Krysa family. They knowingly misrepresented these facts hoping the Krysa family would believe them and buy the truck. What is this called?

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About This Quiz & Worksheet

Test your understanding of contract enforcement in this quiz/worksheet combo. Topics you will need to be familiar with to pass the quiz include classifications for fraud and examples of misrepresentation.

Quiz & Worksheet Goals

This quiz will help assess your knowledge of:

  • The definition of fraud
  • Examples of misrepresentation
  • How material representation is applied
  • The consequences of contract fraud

Skills Practiced

  • Making connections - understand the concept of misrepresentation
  • Knowledge application - use your knowledge to answer questions about contract fraud
  • Reading comprehension - ensure you draw the most important information from the related fraud lesson

Additional Learning

You should read the related lesson on this topic. The name of the lesson is Contract Enforcement: Misrepresentation & Fraud. This lesson will help you:

  • Explore an example of a contract
  • Define contract fraud
  • Explain characteristics of material representation
  • Find examples of misrepresentation