Question 1

Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She

Accepted Answer

A)   can keep the horse and the tack.
B)   can keep the horse but not the tack.
C)   can keep the tack but not the horse.
D)   must return both the horse and the tack.E) None of the above
F) B) and C) D

Question 2

Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's

Accepted Answer

A)   the reasonable value of the groceries.
B)   the retail value of the groceries.
C)   the wholesale value of the groceries.
D)   nothing.E) A) and C)
F) A) and B)

Question 3

In State X, persons must be at least eighteen years old before they can purchase alcoholic beverages. The state also has passed a law requiring that persons who prepare and serve liquor in the form of drinks in commercial establishments be licensed. The only requirement for obtaining a yearly license is that the person be at least eighteen years old. Moffitt, aged thirty-five, is hired as a bartender for the Lone Star Restaurant. Bekins, a staunch alumnus of a nearby university, brings twenty of his friends to the restaurant to celebrate a football victory. Bekins has ordered four rounds of drinks, and the bar bill exceeds $200. Bekins learns that Moffitt has failed to renew his bartender's license, and Bekins refuses to pay, claiming the contract is unenforceable. Is Bekins correct

Accepted Answer

Contracts made with unlicensed persons m...

Question 4

A contract to commit a crime is a contract and therefore enforceable.

Accepted Answer

A) True 
 B)False

Question 5

Smitty enters into an illegal bargain with Taylor. Smitty can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of

Accepted Answer

A)   fraud.
B)   his desire to obtain the object of the deal.
C)   a persuasive "sell" by Taylor.
D)   his belief that Taylor would do right by him.E) A) and B)
F) A) and C)

Question 6

Baby Products, Inc., hires Cole to develop and implement an e-commerce strategy for marketing Baby's products. Cole signs a contract that includes a clause prohibiting him from competing with Baby during and after the employment. Before the strategy is implemented, Cole resigns from Baby's employ and opens a business to compete with Baby. In Baby's suit against Cole, to determine whether Cole may compete with Baby, what is the most important factor the court should consider

Accepted Answer

In determining whether Cole may compete ...

Question 7

The age of majority in most states is eighteen years.

Accepted Answer

A) True 
 B)False

Question 8

In an employment contract, a covenant not to compete can be enforceable.

Accepted Answer

A) True 
 B)False

Question 9

Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

Accepted Answer

A)   valid but may be disaffirmed.
B)   valid but may not be disaffirmed.
C)   void as a matter of law.
D)   void unless it is also signed by Ed, the manager of Dine & Drink.E) A) and D)
F) None of the above

Question 10

Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She 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)   not collect the commission, keep it, or foreclose on the property.E) A) and B)
F) None of the above

Question 11

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Accepted Answer

A) True 
 B)False

Question 12

Portions of a divisible contract may be enforced.

Accepted Answer

A) True 
 B)False

Question 13

If an illegal contract is executory, either party can enforce it.

Accepted Answer

A) True 
 B)False

Question 14

Federal law bars electronic payments, such as credit-card transactions, at online gambling sites.

Accepted Answer

A) True 
 B)False

Question 15

When both parties to a contract are minors, neither of them may disaffirm the contract.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False  False

Question 17

Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract

Accepted Answer

A)   does not change the fact that Phil is bound by the contract.
B)   does not yet exist because Olga is still a minor.
C)   gives Phil, an adult, the right to disaffirm the contract.
D)   is not valid because a computer is a "necessary."E) None of the above
F) A) and C)

Question 18

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Accepted Answer

A) True 
 B)False

Question 19

All contracts between adults and minors are void.

Accepted Answer

A) True 
 B)False  False

Question 20

A party who uses the benefits of a contract before paying for them commits usury.

Accepted Answer

A) True 
 B)False

Exam 13: Capacity and Legality

Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She

Correct Answer
verified
D

Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's

Correct Answer
verified

Correct Answer
verified
Contracts made with unlicensed persons m...
View Answer

A contract to commit a crime is a contract and therefore enforceable.

Correct Answer
verified

Smitty enters into an illegal bargain with Taylor. Smitty can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of

Correct Answer
verified

Correct Answer
verified
In determining whether Cole may compete ...
View Answer

The age of majority in most states is eighteen years.

Correct Answer
verified

In an employment contract, a covenant not to compete can be enforceable.

Correct Answer
verified

Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

Correct Answer
verified

Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She can

Correct Answer
verified

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Correct Answer
verified

Portions of a divisible contract may be enforced.

Correct Answer
verified

If an illegal contract is executory, either party can enforce it.

Correct Answer
verified

Federal law bars electronic payments, such as credit-card transactions, at online gambling sites.

Correct Answer
verified

When both parties to a contract are minors, neither of them may disaffirm the contract.

Correct Answer
verified

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

Correct Answer
verified
False

Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract

Correct Answer
verified

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Correct Answer
verified

All contracts between adults and minors are void.

Correct Answer
verified
False

A party who uses the benefits of a contract before paying for them commits usury.

Correct Answer
verified

Exam 13: Capacity and Legality

Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She

Correct AnswerverifiedD

Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's

Correct AnswerverifiedShow Answer

Correct AnswerverifiedContracts made with unlicensed persons m...View AnswerShow Answer

A contract to commit a crime is a contract and therefore enforceable.

Correct AnswerverifiedShow Answer

Smitty enters into an illegal bargain with Taylor. Smitty can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIn determining whether Cole may compete ...View AnswerShow Answer

The age of majority in most states is eighteen years.

Correct AnswerverifiedShow Answer

In an employment contract, a covenant not to compete can be enforceable.

Correct AnswerverifiedShow Answer

Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

Correct AnswerverifiedShow Answer

Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She can

Correct AnswerverifiedShow Answer

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Correct AnswerverifiedShow Answer

Portions of a divisible contract may be enforced.

Correct AnswerverifiedShow Answer

If an illegal contract is executory, either party can enforce it.

Correct AnswerverifiedShow Answer

Federal law bars electronic payments, such as credit-card transactions, at online gambling sites.

Correct AnswerverifiedShow Answer

When both parties to a contract are minors, neither of them may disaffirm the contract.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract

Correct AnswerverifiedShow Answer

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Correct AnswerverifiedShow Answer

All contracts between adults and minors are void.

Correct AnswerverifiedFalse

A party who uses the benefits of a contract before paying for them commits usury.

Correct AnswerverifiedShow Answer

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified
Contracts made with unlicensed persons m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In determining whether Cole may compete ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified