Question 1

What is meant by "insane but not adjudged insane?" What are its consequences?

Accepted Answer

If no formal ruling has been made about

Question 2

Which of the following is true of a minor's duty toward a contract for necessaries of life?

Accepted Answer

A)  Minors need to reach the age of majority to enter into contracts for necessaries of life. 
B)  Minors are exempt from paying for contracts of necessaries of life. 
C)  Minors must pay the reasonable value of necessaries of life for which they contract. 
D)  Parents are liable to provide necessaries of life to their minor children if they become emancipated. 
A)  Minors need to reach the age of majority to enter into contracts for necessaries of life. 
B)  Minors are exempt from paying for contracts of necessaries of life. 
C)  Minors must pay the reasonable value of necessaries of life for which they contract. 
D)  Parents are liable to provide necessaries of life to their minor children if they become emancipated.

Question 3

The parental duty of support terminates if a minor becomes ________.

Accepted Answer

A)  poor 
B)  emancipated 
C)  diseased 
D)  intoxicated 
A)  poor 
B)  emancipated 
C)  diseased 
D)  intoxicated

Question 4

If a minor does not disaffirm a contract either during the period of minority or within a reasonable time after reaching the age of majority,the contract is considered ratified.

Accepted Answer

A) True 
 B)False

Question 5

Usury laws are intended to protect unsophisticated borrowers from loan sharks and others who charge exorbitant rates of interest.

Accepted Answer

A) True 
 B)False

Question 6

Intoxicated persons are liable in a(n)________ to pay the reasonable value for necessaries they receive.

Accepted Answer

A)  void contract 
B)  unconscionable contract 
C)  quasi-contract 
D)  pseudo-contract 
A)  void contract 
B)  unconscionable contract 
C)  quasi-contract 
D)  pseudo-contract

Question 7

________ is a rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

Accepted Answer

A)  Duty of restoration 
B)  Duty of restitution 
C)  Infancy doctrine 
D)  Emancipation doctrine 
A)  Duty of restoration 
B)  Duty of restitution 
C)  Infancy doctrine 
D)  Emancipation doctrine

Question 8

If a minor ratifies a contract while still being a minor,________.

Accepted Answer

A)  the contract can be disaffirmed by the minor 
B)  the minor is bound by the terms of the contract 
C)  the minor is exempt from the duty of restitution 
D)  the minor has to hold the adult in status quo in case of disaffirmance 
A)  the contract can be disaffirmed by the minor 
B)  the minor is bound by the terms of the contract 
C)  the minor is exempt from the duty of restitution 
D)  the minor has to hold the adult in status quo in case of disaffirmance

Question 9

Sixteen-year-old Frank bought a video game console from John for $150.Frank is a minor,while John is a competent adult.A month later,the console started malfunctioning on its own.Frank returned the console to John.If Frank disaffirms his contract with John for buying the console,which of the following will be considered true?

Accepted Answer

A)  John is not bound by the contract anymore as the exchange has been completed. 
B)  Frank can reclaim full refund of the amount he paid. 
C)  Frank can only ask for full refund once he has reached the age of majority. 
D)  Frank is legally obligated to fix the console before returning it to John before claiming full refund. 
A)  John is not bound by the contract anymore as the exchange has been completed. 
B)  Frank can reclaim full refund of the amount he paid. 
C)  Frank can only ask for full refund once he has reached the age of majority. 
D)  Frank is legally obligated to fix the console before returning it to John before claiming full refund.

Question 10

After becoming sober,an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would constitute legal insanity?

Accepted Answer

A)  weakness of intellect 
B)  emotional problems 
C)  slight delusions 
D)  mental retardation 
A)  weakness of intellect 
B)  emotional problems 
C)  slight delusions 
D)  mental retardation

Question 12

In a contract between a minor and an adult,the duty of restoration lies with the ________.

Accepted Answer

A)  adult 
B)  minor 
C)  competent party 
D)  judiciary 
A)  adult 
B)  minor 
C)  competent party 
D)  judiciary

Question 13

A person who has alternative periods of sanity and insanity can enter into contracts ________.

Accepted Answer

A)  when he or she is in a state of sanity 
B)  when there is a legal guardian appointed by the court for that person 
C)  once he or she has been adjudged to be insane 
D)  only once he or she has been adjudged to be legally insane 
A)  when he or she is in a state of sanity 
B)  when there is a legal guardian appointed by the court for that person 
C)  once he or she has been adjudged to be insane 
D)  only once he or she has been adjudged to be legally insane

Question 14

Which of the following elements has to be proved for a contract to be deemed unconscionable?

Accepted Answer

A)  that the stronger party entered the contract under duress 
B)  that the parties had equal economic resources at their disposal 
C)  that the parties possessed severely unequal bargaining power 
D)  that the dominant part had justly used its economic resources 
A)  that the stronger party entered the contract under duress 
B)  that the parties had equal economic resources at their disposal 
C)  that the parties possessed severely unequal bargaining power 
D)  that the dominant part had justly used its economic resources

Question 15

________ is the act of a minor to rescind a contract under the infancy doctrine,either orally,in writing,or by the minor's conduct.

Accepted Answer

A)  Ratification 
B)  Disaffirmance 
C)  Sanctioning 
D)  Adherence 
A)  Ratification 
B)  Disaffirmance 
C)  Sanctioning 
D)  Adherence

Question 16

Explain the concept of usury laws with an example.

Accepted Answer

State usury laws set an upper limit on t

Question 17

How is the doctrine of unconscionability related to public policy?

Accepted Answer

A)  The doctrine of unconscionability is derived from public policy. 
B)  All contracts contrary to public policy are considered unconscionable. 
C)  Both are used to save a contracting party from a bad bargain. 
D)  Both are very distinctly defined by law. 
A)  The doctrine of unconscionability is derived from public policy. 
B)  All contracts contrary to public policy are considered unconscionable. 
C)  Both are used to save a contracting party from a bad bargain. 
D)  Both are very distinctly defined by law.

Question 18

When can an intoxicated person ratify the contracts he or she entered into while intoxicated?

Accepted Answer

A)  while still intoxicated 
B)  after becoming sober 
C)  after reaching the age of majority 
D)  when the other party is intoxicated 
A)  while still intoxicated 
B)  after becoming sober 
C)  after reaching the age of majority 
D)  when the other party is intoxicated

Question 19

The most prevalent age of majority is ________ years of age for both males and females.

Accepted Answer

A)  18 
B)  25 
C)  50 
D)  51 
A)  18 
B)  25 
C)  50 
D)  51

Question 20

The standard definition of what is a necessary of life does not include medical care.

Accepted Answer

A) True 
 B)False

Exam 11: Capacity and Legality

What is meant by "insane but not adjudged insane?" What are its consequences?

Which of the following is true of a minor's duty toward a contract for necessaries of life?

The parental duty of support terminates if a minor becomes ________.

If a minor does not disaffirm a contract either during the period of minority or within a reasonable time after reaching the age of majority,the contract is considered ratified.

Usury laws are intended to protect unsophisticated borrowers from loan sharks and others who charge exorbitant rates of interest.

Intoxicated persons are liable in a(n)________ to pay the reasonable value for necessaries they receive.

________ is a rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

If a minor ratifies a contract while still being a minor,________.

After becoming sober,an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Which of the following would constitute legal insanity?

In a contract between a minor and an adult,the duty of restoration lies with the ________.

A person who has alternative periods of sanity and insanity can enter into contracts ________.

Which of the following elements has to be proved for a contract to be deemed unconscionable?

________ is the act of a minor to rescind a contract under the infancy doctrine,either orally,in writing,or by the minor's conduct.

Explain the concept of usury laws with an example.

How is the doctrine of unconscionability related to public policy?

When can an intoxicated person ratify the contracts he or she entered into while intoxicated?

The most prevalent age of majority is ________ years of age for both males and females.

The standard definition of what is a necessary of life does not include medical care.

Legal Heritage and the Digital Age

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