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 latest 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 1000K memory, Ross said this model had 2000K. Gary was persuaded and contracted for the computer. Later, Gary learned that every statement made by Ross was untrue, including the one about the memory capacity; the model had only 800K. On these facts, which of the following is true?
◦ Such misrepresentations could result in contractual remedies, legal or equitable, but not in tort remedies.
◦ Only if Ross knew that all of the statements he made were false could Gary get a remedy.
◦ Gary could be awarded the equitable remedy of rescission even if Ross honestly believed everything he said was true.
◦ 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.
◦ The exaggerated claim "it was the latest computer; no other will ever be better" is enough, according to the case law, to allow Gary to get out of the contract.
Staircase to Heaven
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