Question 1

Eli,a minor,buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 pre-mi-um.If Eli can disaffirm the contract,he can most likely recover​

Accepted Answer

A)   ​$500. 
B)   ​$1,000. 
C)   ​$1,500. 
D)   ​nothing.E) B) and C)
F) A) and D)

Question 2

In contract law,ratification is the act of accepting and giving legal force to an obligation that was previously not enforceable.

Accepted Answer

A) True 
 B)False

Question 3

The legal duty to pay a reasonable value for necessaries arises from the contract itself.

Accepted Answer

A) True 
 B)False

Question 4

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is​

Accepted Answer

A)   ​voidable if Fay has a lucid interval at the time of contracting. 
B)   ​voidable if Fay lacks the capacity to comprehend the consequences. 
C)   ​voidable if the other party does not realize that Fay is incompetent. 
D)   unavoidable.E) A) and D)
F) A) and C)

Question 5

Contracts entered into by mentally incompetent persons can be valid.

Accepted Answer

A) True 
 B)False

Question 6

Nelson,a minor,misrepresents his age when agreeing to a contract to buy a restored,antique soda vending machine from Old Is New Again,Inc.Ordinarily,Nelson can disaffirm the contract​

Accepted Answer

A)   ​only if he can prove that the seller did not know his true age. 
B)   ​only if he can prove that the seller knew his true age. 
C)   ​under any circumstances. 
D)   ​under no circumstances.E) B) and C)
F) B) and D)

Question 7

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is​

Accepted Answer

A)   ​enforceable if Huck comprehended the consequences. 
B)   ​enforceable if Huck knew the market value of the farm. 
C)   ​enforceable if Huck was the record owner of the farm. 
D)   ​void.E) B) and D)
F) A) and D)

Question 8

In most states,when a person turns eighteen,he or she has reached​

Accepted Answer

A)   ​the age of majority. 
B)   ​the age of infancy. 
C)   ​the age of ratification. 
D)   ​the age of competence.E) B) and C)
F) A) and B)

Question 9

Parents are always liable for the contracts made by their minor children.

Accepted Answer

A) True 
 B)False

Question 10

Gabriella and Esteban are emancipated minors who,after their emancipation,marry each other.Later,they enter into a contract to buy a condominium.In this sequence of events,most likely,their minority status​

Accepted Answer

A)   ​terminated on their emancipation. 
B)   ​terminated on their marriage. 
C)   ​terminated on entering into the contract to buy a condominium. 
D)   ​has not yet terminated.E) A) and C)
F) A) and B)

Question 11

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a land-lord,to rent an apartment.Jody can​

Accepted Answer

A)   ​disaffirm the lease because her parents can be held liable for it. 
B)   ​disaffirm the lease without liability. 
C)   ​not disaffirm the lease because an apartment is a "necessary." 
D)   ​not disaffirm the lease because she intended to live on her own.E) B) and D)
F) None of the above

Question 12

Intoxicated and not aware of the consequences,Umberto agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is​

Accepted Answer

A)   ​enforceable. 
B)   ​not enforceable because contracting parties can change their minds. 
C)   ​not enforceable because the contract clearly favors Wander Talk. 
D)   ​not enforceable because Umberto was intoxicated enough to lack mental capacity when he agreed to it.E) B) and C)
F) A) and C)

Question 13

Food is a "necessary."​

Accepted Answer

A) True 
 B)False

Question 14

On Mitchell's eighteenth birthday,he decides that he no longer wants to keep a fishing boat he bought from Water Craft,Inc.,when he was seventeen.His right to disaffirm the deal will depend on​

Accepted Answer

A)   ​why Mitchell no longer wants to keep the boat. 
B)   ​why Mitchell entered into the contract to buy the boat. 
C)   ​whether Mitchell acts within a reasonable period of time. 
D)   ​whether Water Craft has the right to disaffirm.E) C) and D)
F) A) and B)

Question 15

Stella is fifteen.In most states,for contractual purposes,Stella would be considered a minor until she is​

Accepted Answer

A)   ​sixteen. 
B)   ​eighteen. 
C)   ​seventeen. 
D)   ​twenty-one.E) A) and B)
F) C) and D)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The age of majority in most states is eighteen years.

Accepted Answer

A) True 
 B)False

Question 18

In general,minors are NOT personally liable for their torts.

Accepted Answer

A) True 
 B)False

Question 19

Cray,a minor,returns a digital music player that he bought from Discount City,which re-funds the price.Their exchange involves​

Accepted Answer

A)   ​emancipation. 
B)   ​ratification. 
C)   ​restitution. 
D)   ​misrepresentation.E) A) and B)
F) B) and C)

Question 20

Jerome relinquishes the right to his daughter Meredith's control,care,custody,and earnings.This act is​

Accepted Answer

A)   ​disaffirmance. 
B)   ​emancipation. 
C)   ​ratification. 
D)   ​severability.E) A) and C)
F) All of the above

Exam 12: Capacity

The age of majority in most states is eighteen years.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is​

Correct AnswerverifiedShow Answer

Stella is fifteen.In most states,for contractual purposes,Stella would be considered a minor until she is​

Correct AnswerverifiedShow Answer

Intoxicated and not aware of the consequences,Umberto agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is​

Correct AnswerverifiedShow Answer

Parents are always liable for the contracts made by their minor children.

Correct AnswerverifiedShow Answer

Eli,a minor,buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 pre-mi-um.If Eli can disaffirm the contract,he can most likely recover​

Correct AnswerverifiedShow Answer

In general,minors are NOT personally liable for their torts.

Correct AnswerverifiedShow Answer

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a land-lord,to rent an apartment.Jody can​

Correct AnswerverifiedShow Answer

In contract law,ratification is the act of accepting and giving legal force to an obligation that was previously not enforceable.

Correct AnswerverifiedShow Answer

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is​

Correct AnswerverifiedShow Answer

On Mitchell's eighteenth birthday,he decides that he no longer wants to keep a fishing boat he bought from Water Craft,Inc.,when he was seventeen.His right to disaffirm the deal will depend on​

Correct AnswerverifiedShow Answer

Gabriella and Esteban are emancipated minors who,after their emancipation,marry each other.Later,they enter into a contract to buy a condominium.In this sequence of events,most likely,their minority status​

Correct AnswerverifiedShow Answer

Cray,a minor,returns a digital music player that he bought from Discount City,which re-funds the price.Their exchange involves​

Correct AnswerverifiedShow Answer

Nelson,a minor,misrepresents his age when agreeing to a contract to buy a restored,antique soda vending machine from Old Is New Again,Inc.Ordinarily,Nelson can disaffirm the contract​

Correct AnswerverifiedShow Answer

In most states,when a person turns eighteen,he or she has reached​

Correct AnswerverifiedShow Answer

Food is a "necessary."​

Correct AnswerverifiedShow Answer

Contracts entered into by mentally incompetent persons can be valid.

Correct AnswerverifiedShow Answer

The legal duty to pay a reasonable value for necessaries arises from the contract itself.

Correct AnswerverifiedShow Answer

Jerome relinquishes the right to his daughter Meredith's control,care,custody,and earnings.This act is​

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is

Correct Answer
verified

Stella is fifteen.In most states,for contractual purposes,Stella would be considered a minor until she is

Correct Answer
verified

Intoxicated and not aware of the consequences,Umberto agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is

Correct Answer
verified

Correct Answer
verified

Eli,a minor,buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 pre-mi-um.If Eli can disaffirm the contract,he can most likely recover

Correct Answer
verified

Correct Answer
verified

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a land-lord,to rent an apartment.Jody can

Correct Answer
verified

Correct Answer
verified

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is

Correct Answer
verified

On Mitchell's eighteenth birthday,he decides that he no longer wants to keep a fishing boat he bought from Water Craft,Inc.,when he was seventeen.His right to disaffirm the deal will depend on

Correct Answer
verified

Gabriella and Esteban are emancipated minors who,after their emancipation,marry each other.Later,they enter into a contract to buy a condominium.In this sequence of events,most likely,their minority status

Correct Answer
verified

Cray,a minor,returns a digital music player that he bought from Discount City,which re-funds the price.Their exchange involves

Correct Answer
verified

Nelson,a minor,misrepresents his age when agreeing to a contract to buy a restored,antique soda vending machine from Old Is New Again,Inc.Ordinarily,Nelson can disaffirm the contract

Correct Answer
verified

In most states,when a person turns eighteen,he or she has reached

Correct Answer
verified

Food is a "necessary."

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Jerome relinquishes the right to his daughter Meredith's control,care,custody,and earnings.This act is

Correct Answer
verified