Question 1

A minor who enters into a contract for necessaries may disaffirm the contract without liability for the value of the goods.

Accepted Answer

A) True 
 B)False

Question 2

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for

Accepted Answer

A)   ​the entire price of the ticket.
B)   ​no part of the price of the ticket.
C)   ​up to half of the price of the ticket.
D)   ​up to two-thirds of the price of the ticket.E) A) and C)
F) A) and B)

Question 3

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.

Accepted Answer

A) True 
 B)False

Question 4

Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

Accepted Answer

A) True 
 B)False

Question 5

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Accepted Answer

A) True 
 B)False

Question 6

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

Accepted Answer

A)   ​disaffirm the contract.
B)   ​disaffirm the contract only if she makes full payment.
C)   ​disaffirm the contract only if she returns the SUV in good condition.
D)   ​not disaffirm the contract due to the misrepresentation.E) A) and D)
F) B) and D)

Question 7

A bargain is unconscionable if it is grossly unfair.

Accepted Answer

A) True 
 B)False

Question 8

Any contract to commit a crime is unenforceable.

Accepted Answer

A) True 
 B)False

Question 9

Ohio charges Pablo, an architect, a fee to practice his profession in the state. This is

Accepted Answer

A)   ​usurious.
B)   ​unconscionable.
C)   ​a license.
D)   ​exculpatory.E) All of the above
F) A) and B)

Question 10

Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is

Accepted Answer

A)   ​unenforceable because Cricket was intoxicated.
B)   ​enforceable.
C)   ​unenforceable if Cricket disaffirms it.
D)   ​unenforceable if Download disaffirms it.E) B) and D)
F) All of the above

Question 11

Jeff is seventeen years old. Legally, Jeff is considered

Accepted Answer

A)   ​an adult.
B)   ​a minor.
C)   ​ratified.
D)   ​emancipated.E) A) and B)
F) B) and C)

Question 12

Holly, a real estate broker licensed only in Iowa, concludes a sale of farmland in Illinois. Holly can

Accepted Answer

A)   ​collect the commission if it has not been paid.
B)   ​keep the commission if it has already been paid.
C)   ​foreclose on the property to obtain any unpaid amount.
D)   ​none of the choices.E) A) and C)
F) A) and D)

Exam 14: Capacity and Legality

Any contract to commit a crime is unenforceable.

Correct Answer
verified

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Correct Answer
verified

Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

Correct Answer
verified

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

Correct Answer
verified

A bargain is unconscionable if it is grossly unfair.

Correct Answer
verified

Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is

Correct Answer
verified

Holly, a real estate broker licensed only in Iowa, concludes a sale of farmland in Illinois. Holly can

Correct Answer
verified

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for

Correct Answer
verified

Ohio charges Pablo, an architect, a fee to practice his profession in the state. This is

Correct Answer
verified

A minor who enters into a contract for necessaries may disaffirm the contract without liability for the value of the goods.

Correct Answer
verified

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.

Correct Answer
verified

Jeff is seventeen years old. Legally, Jeff is considered

Correct Answer
verified

Exam 14: Capacity and Legality

Any contract to commit a crime is unenforceable.

Correct AnswerverifiedShow Answer

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Correct AnswerverifiedShow Answer

Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

Correct AnswerverifiedShow Answer

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

Correct AnswerverifiedShow Answer

A bargain is unconscionable if it is grossly unfair.

Correct AnswerverifiedShow Answer

Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is

Correct AnswerverifiedShow Answer

Holly, a real estate broker licensed only in Iowa, concludes a sale of farmland in Illinois. Holly can

Correct AnswerverifiedShow Answer

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for

Correct AnswerverifiedShow Answer

Ohio charges Pablo, an architect, a fee to practice his profession in the state. This is

Correct AnswerverifiedShow Answer

A minor who enters into a contract for necessaries may disaffirm the contract without liability for the value of the goods.

Correct AnswerverifiedShow Answer

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.

Correct AnswerverifiedShow Answer

Jeff is seventeen years old. Legally, Jeff is considered

Correct AnswerverifiedShow Answer

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Correct Answer
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