Exam 12: Capacity

To avoid a contract,an intoxicated person's judgment must be proved to have been so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

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(True/False)

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Question 1

Correct Answer:

Verified

True

Some states impose a duty on a minor who disaffirms a contract to re-store the adult party to the position he or she held before the con-tract was made.

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(True/False)

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Question 2

Correct Answer:

Verified

True

Games Galore Corporation hires Haley,a minor,to create new customized game software for certain clients.Haley signs a contract that requires her to work for Games Galore for eighteen months.Before beginning work,however,Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft,Inc.,a Games Galore competitor.Is Games Galore's contract with Haley enforceable? Why or why not?

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Question 3

Correct Answer:

Verified

The contract is not enforceable.Haley is a minor,so any contract that she enters is voidable by her.In other words,Haley had the option to disaffirm the contract.A contract entered into by a minor can be disaffirmed at any time during minority,or for a reasonable time after the minor comes of age.Haley's announcement that she would not be bound by the contract was sufficient to disaffirm it.Haley had not received anything under the contract with Games Galore,so there is nothing to return under a duty of restitution.Also,there is no significance to Haley's agreeing to work for Ideal Worldcraft,Games Galore's competitor.

James is sixteen years old.Legally,James is considered

(Multiple Choice)

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Question 4

Contractual capacity refers to the legal ability to enter into a contract.

(True/False)

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Question 5

Contracts formed between parties that lack contractual capacity are usually unenforceable.

(True/False)

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Question 6

Orin enters into a contract with Natalie.Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian.Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the grounds of Orin's incompetency.The contract is

(Multiple Choice)

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Question 7

The legitimate interests of those who deal with minors are recognized by the duty of restitution.

(True/False)

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Question 8

Lydia,a minor,charges the cost of a smartphone at a Mobile Devices & Minutes store.Two nights later,Lydia loses the phone at Natural Foods restaurant.She disaffirms the phone's purchase.Lydia owes Mobile Devices the reasonable value of the phone

(Multiple Choice)

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Question 9

Vijay enters into a contract to sell his laptop to Winnie.Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority.Winnie has

(Multiple Choice)

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Question 10

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

(True/False)

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Question 11

In some jurisdictions,minors who misrepresent their ages are not liable for the tort of deceit.

(True/False)

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Question 12

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods.

(True/False)

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Question 13

Mica,a minor,signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is

(Multiple Choice)

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Question 14

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of

(Multiple Choice)

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Question 15

For a minor to disaffirm a contract,he or she must present the contract to a court.

(True/False)

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Question 16

A contract entered into by an intoxicated person is never valid.

(True/False)

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Question 17

Necessaries are goods and services that fulfill basic needs,such as food,clothing,shelter,and medical services.

(True/False)

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Question 18

Geri is a minor.Without her parents' knowledge,she signs a contract to buy an airline ticket to Hawaii for spring break.Geri's parents are liable for

(Multiple Choice)

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Question 19

Jill,a minor,buys an Xbox 360 from Kelly's Gaming Store,agreeing to pay the price in seven monthly installments.On the way home,Jill drops the Xbox and it breaks.The next day,she goes to Kelly's to return the Xbox.Can she cancel the installment agreement? If not why not? If so,are there any conditions?

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Question 20

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Exam 12: Capacity

To avoid a contract,an intoxicated person's judgment must be proved to have been so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

Some states impose a duty on a minor who disaffirms a contract to re-store the adult party to the position he or she held before the con-tract was made.

James is sixteen years old.Legally,James is considered​

Contractual capacity refers to the legal ability to enter into a contract.

Contracts formed between parties that lack contractual capacity are usually unenforceable.

Orin enters into a contract with Natalie.Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian.Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the grounds of Orin's incompetency.The contract is​

The legitimate interests of those who deal with minors are recognized by the duty of restitution.

Lydia,a minor,charges the cost of a smartphone at a Mobile Devices & Minutes store.Two nights later,Lydia loses the phone at Natural Foods restaurant.She disaffirms the phone's purchase.Lydia owes Mobile Devices the reasonable value of the phone​

Vijay enters into a contract to sell his laptop to Winnie.Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority.Winnie has​

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

In some jurisdictions,minors who misrepresent their ages are not liable for the tort of deceit.

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods.

Mica,a minor,signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is​

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of​

For a minor to disaffirm a contract,he or she must present the contract to a court.

A contract entered into by an intoxicated person is never valid.

Necessaries are goods and services that fulfill basic needs,such as food,clothing,shelter,and medical services.

Geri is a minor.Without her parents' knowledge,she signs a contract to buy an airline ticket to Hawaii for spring break.Geri's parents are liable for​

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Ethics in Business

The Courts and Alternative Dispute Resolution

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Introduction to Contracts

Offer and Acceptance

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The Legality of Agreements

Voluntary Consent

Written Contracts

Third Party Rights

Contract Discharge and Remedies

Introduction to Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach

Warranties and Product Liability

Consumer Protection

The Essentials of Negotiability

Transferability and Liability

Checks and Banking in the Digital Age

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Formation and Termination of a Corporation

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James is sixteen years old.Legally,James is considered

Orin enters into a contract with Natalie.Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian.Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the grounds of Orin's incompetency.The contract is

Lydia,a minor,charges the cost of a smartphone at a Mobile Devices & Minutes store.Two nights later,Lydia loses the phone at Natural Foods restaurant.She disaffirms the phone's purchase.Lydia owes Mobile Devices the reasonable value of the phone

Vijay enters into a contract to sell his laptop to Winnie.Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority.Winnie has

Mica,a minor,signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of

Geri is a minor.Without her parents' knowledge,she signs a contract to buy an airline ticket to Hawaii for spring break.Geri's parents are liable for