Question 1

Which of the following is not a method of ratification?

Accepted Answer

A)  Through express language. 
B)  Written acceptance of a portion of the contract. 
C)  Through failure to make a timely disaffirmance. 
D)  As implied from conduct. 
A)  Through express language. 
B)  Written acceptance of a portion of the contract. 
C)  Through failure to make a timely disaffirmance. 
D)  As implied from conduct.

Question 2

If Molly, a 15 year old, contracted to buy a fur coat by mail, the coat manufacturer would not have to send it since the contract was void.

Accepted Answer

A) True 
 B)False

Question 3

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Accepted Answer

A) True 
 B)False

Question 4

Joe is mentally impaired from the effects of a prescribed medication. If he makes a contract while under this impairment, the contract would be voidable if he cannot comprehend the subject of the contract, its nature, and its probable consequences, even if the other party does not know or have reason to know of his mental condition.

Accepted Answer

A) True 
 B)False

Question 5

Zena, age17, lives on her own and pays all her own expenses, including groceries, rent and electric bills. If she makes a contract to buy a surround sound system for her television, she may not, in most jurisdictions, assert her minority status and set aside the contract.

Accepted Answer

A) True 
 B)False

Question 6

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. 
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.

Question 7

Ratification of a contract may be withdrawn if done so in a reasonable time period.

Accepted Answer

A) True 
 B)False

Question 8

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. 
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.

Question 9

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 10

Melody, age 17, makes a contract with Seung, who is an adult. Melody:

Accepted Answer

A)  may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. 
B)  may ratify the contract while still a minor, thereby surrendering the power of avoidance. 
C)  has entered a void contract since she lacked capacity. 
D)  may disaffirm only after reaching the age of majority. 
A)  may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. 
B)  may ratify the contract while still a minor, thereby surrendering the power of avoidance. 
C)  has entered a void contract since she lacked capacity. 
D)  may disaffirm only after reaching the age of majority.

Question 11

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 cell phone. 
B)  Textbooks for school. 
C)  Basic clothing. 
D)  An automobile. 
A)  A cell phone. 
B)  Textbooks for school. 
C)  Basic clothing. 
D)  An automobile.

Question 12

Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn money for college. She has an important interview with a modeling agency and wants to make a good impression, so she withdraws $5,000 from her savings and buys a designer outfit and a fur coat for the interview. A week later, she returns the coat to the department store and says she would like her money back. The store is reluctant to take the items. What are Cheryl's rights? Explain.

Accepted Answer

The issue is whether the coat is a neces

Question 13

At age 17, Wanda purchased an expensive sound system from Lectronic City. If Wanda wishes to ratify this contract, Wanda:

Accepted Answer

A)  must reach the age of majority and ratify the contract as a whole. 
B)  may do so by express notification at any time before reaching the age of majority. 
C)  may at any time keep the sound system but avoid any remaining debt owed on it. 
D)  may do so at any time by express or implied action before or after reaching the age of majority. 
A)  must reach the age of majority and ratify the contract as a whole. 
B)  may do so by express notification at any time before reaching the age of majority. 
C)  may at any time keep the sound system but avoid any remaining debt owed on it. 
D)  may do so at any time by express or implied action before or after reaching the age of majority.

Question 14

Mel is 17 years old but looks older than 18. He makes a contract to buy a car from Maisie, who is the age of majority. When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age.

Accepted Answer

A) True 
 B)False

Question 15

An automobile will never be considered be a necessary item for a minor.

Accepted Answer

A) True 
 B)False

Question 16

If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair, the contract is voidable.

Accepted Answer

A) True 
 B)False

Question 17

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Accepted Answer

A) True 
 B)False

Question 18

A minor can ratify part of a contract and disaffirm another part of it.

Accepted Answer

A) True 
 B)False

Question 19

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

Accepted Answer

A) True 
 B)False

Question 20

In most states, determining what is a reasonable time for disaffirmance depends on a statutorily prescribed time period.

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

Which of the following is not a method of ratification?

If Molly, a 15 year old, contracted to buy a fur coat by mail, the coat manufacturer would not have to send it since the contract was void.

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Zena, age17, lives on her own and pays all her own expenses, including groceries, rent and electric bills. If she makes a contract to buy a surround sound system for her television, she may not, in most jurisdictions, assert her minority status and set aside the contract.

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

Ratification of a contract may be withdrawn if done so in a reasonable time period.

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?

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.

Melody, age 17, makes a contract with Seung, who is an adult. Melody:

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?

At age 17, Wanda purchased an expensive sound system from Lectronic City. If Wanda wishes to ratify this contract, Wanda:

Mel is 17 years old but looks older than 18. He makes a contract to buy a car from Maisie, who is the age of majority. When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age.

An automobile will never be considered be a necessary item for a minor.

If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair, the contract is voidable.

Contracts of a ward may be ratified by his guardian during the period of guardianship.

A minor can ratify part of a contract and disaffirm another part of it.

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

In most states, determining what is a reasonable time for disaffirmance depends on a statutorily prescribed time period.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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