Robert is a pastor at United Church. One of the members of his congregation, Mrs. Smith, is a
very devout believer.
Robert convinces Mrs. Smith to sell him her farm for $5,000. The actual
value of the farm is $500,000. Mrs. Smith dies and her estate sues to get her farm back. Which of
the following best describes this situation?
A) This is a case of undue influence, so the estate can rescind the contract.
B) This is a case of fraud, so the estate can rescind the contract.
C) Unless Robert can prove that there was no undue influence, the contract can be rescinded.
D) Mrs. Smith is a competent adult and may dispose of her property in any way, and for any
price she sees fit.
E) This is not a case of undue influence because there is no fiduciary relationship.
C
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Minimizing period-by-period increases in unit variable costs and total fixed costs defines efforts of cost
a. control. b. avoidance. c. containment. d. reduction.
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A) 50% B) 10% C) 30% D) 25%
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