Question 1

Ratification does need to be express; it may be implied from the minor's conduct.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is untrue regarding the contracts of intoxicated persons?

Accepted Answer

A)   If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable.
B)   The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency.
C)   Slight intoxication will destroy one's contractual capacity.
D)   To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.E) B) and C)
F) A) and D)

Question 3

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

Accepted Answer

A)   If there is a conflict, the store's return policy will override Marsha's right of disaffirmation.
B)   In most jurisdictions, Marsha may get her money back only if she has not opened or damaged the merchandise in any way.
C)   In a majority of jurisdictions, Marsha may get her money back even if she cannot return the merchandise.
D)   In most jurisdictions, Marsha may get some of her money back but she must pay the reasonable value of the goods if that differs from the contract price.E) A) and B)
F) B) and C)

Question 4

Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, Robert:

Accepted Answer

A)   may disaffirm and get his money back.
B)   may not disaffirm since he lied.
C)   may only receive a portion of his money.
D)   will receive his money less depreciation.E) All of the above
F) C) and D)

Question 5

If a minor sells property that the buyer then resells to a good faith purchaser for value and the minor then disaffirms the sales contract, under both the traditional view and the UCC, the minor can recover the property from the good faith purchaser for value since the minor has the power of avoidance and both purchasers had only voidable title.

Accepted Answer

A) True 
 B)False

Question 6

To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

Accepted Answer

A) True 
 B)False

Question 7

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Accepted Answer

A) True 
 B)False

Question 8

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week. In this case:

Accepted Answer

A)   Donald has expressly ratified the contract.
B)   the contract must be renegotiated, because Donald was a minor when it was made.
C)   Donald can change his mind and avoid the contract, because it was made when he was a minor.
D)   the contract is void ab initio , because Donald was a minor at the time it was made.E) None of the above
F) C) and D)

Question 9

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Accepted Answer

A)   Upon restoring the consideration received in a situation involving a fully executed contract.
B)   Where real property is involved, upon reaching the age of majority.
C)   During the time of his minority or for a reasonable time thereafter.
D)   Where the minor wishes to perform part of a contract and disaffirm another part of the same contract.E) C) and D)
F) None of the above

Question 10

The case of In re The Score Board, Inc. involved the issue of:

Accepted Answer

A)   a minor's liability for misrepresentation of age.
B)   whether an incompetent person's contracts are void or voidable.
C)   ratification of a contract upon attaining majority.
D)   liability for necessaries.E) None of the above
F) C) and D)

Question 11

Compare the liability of an intoxicated person to that of a person who is mentally ill. How are their situations similar? How are they different with regard to contractual capacity?

Accepted Answer

If a person is mentally incompetent, he ...

Question 12

Seventeen-year-old Teresa wants to disaffirm her student loan agreements. In most states, she will not be allowed to do so.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Accepted Answer

A)   A camera.
B)   School supplies.
C)   Clothing.
D)   An automobile.E) A) and B)
F) B) and D)

Question 14

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

Seventeen-year-old Teresa wants to disaffirm her student loan agreements. In most states, she will not be allowed to do so.

Correct Answer
verified

To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

Correct Answer
verified

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Correct Answer
verified

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Correct Answer
verified

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Correct Answer
verified

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

Correct Answer
verified

Which of the following is untrue regarding the contracts of intoxicated persons?

Correct Answer
verified

Correct Answer
verified

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week. In this case:

Correct Answer
verified

Compare the liability of an intoxicated person to that of a person who is mentally ill. How are their situations similar? How are they different with regard to contractual capacity?

Correct Answer
verified
If a person is mentally incompetent, he ...
View Answer

Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, Robert:

Correct Answer
verified

The case of In re The Score Board, Inc. involved the issue of:

Correct Answer
verified

Ratification does need to be express; it may be implied from the minor's conduct.

Correct Answer
verified

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Correct Answer
verified

Exam 14: Contractual Capacity

Seventeen-year-old Teresa wants to disaffirm her student loan agreements. In most states, she will not be allowed to do so.

Correct AnswerverifiedShow Answer

To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

Correct AnswerverifiedShow Answer

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Correct AnswerverifiedShow Answer

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Correct AnswerverifiedShow Answer

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Correct AnswerverifiedShow Answer

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

Correct AnswerverifiedShow Answer

Which of the following is untrue regarding the contracts of intoxicated persons?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week. In this case:

Correct AnswerverifiedShow Answer

Compare the liability of an intoxicated person to that of a person who is mentally ill. How are their situations similar? How are they different with regard to contractual capacity?

Correct AnswerverifiedIf a person is mentally incompetent, he ...View AnswerShow Answer

Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, Robert:

Correct AnswerverifiedShow Answer

The case of In re The Score Board, Inc. involved the issue of:

Correct AnswerverifiedShow Answer

Ratification does need to be express; it may be implied from the minor's conduct.

Correct AnswerverifiedShow Answer

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Correct AnswerverifiedShow Answer

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If a person is mentally incompetent, he ...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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