Question 1

Minors are generally held liable on a quasi contract basis for the reasonable value of necessaries furnished to them.

Accepted Answer

A) True 
 B)False

Question 2

According to the Uniform Commercial Code,minors whose contracts involve goods can no longer reclaim those goods from innocent third parties.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true of contract ratification?

Accepted Answer

A)  Minors who have lied about their age can ratify their contracts. 
B)  A contract is voidable if it is ratified on reaching majority. 
C)  For a person adjudicated insane, his or her personal representatives cannot ratify the contract. 
D)  People who regain their mental capacity can ratify their contracts. 
A)  Minors who have lied about their age can ratify their contracts. 
B)  A contract is voidable if it is ratified on reaching majority. 
C)  For a person adjudicated insane, his or her personal representatives cannot ratify the contract. 
D)  People who regain their mental capacity can ratify their contracts.

Question 4

Why are minors held liable on a quasi contract basis for the reasonable value of necessaries furnished to them?

Accepted Answer

Minors are generally held liable on a qu

Question 5

Which of the following is true of emancipation?

Accepted Answer

A)  Emancipation is used to describe the termination of a parent's right to receive services and wages from a child and to generally control him. 
B)  Emancipation occurs when a minor does not disaffirm within a reasonable time after attaining majority and thereafter loses the right to disaffirm. 
C)  Emancipation occurs when a minor moves away from home and the parents object to his or her actions. 
D)  Emancipation always gives a minor the capacity to contract. 
A)  Emancipation is used to describe the termination of a parent's right to receive services and wages from a child and to generally control him. 
B)  Emancipation occurs when a minor does not disaffirm within a reasonable time after attaining majority and thereafter loses the right to disaffirm. 
C)  Emancipation occurs when a minor moves away from home and the parents object to his or her actions. 
D)  Emancipation always gives a minor the capacity to contract.

Question 6

Minors are liable for the value of necessaries they have purchased under a contract but have not received at the time they disaffirm.

Accepted Answer

A) True 
 B)False

Question 7

In a contract involving a minor,whether an item can be considered "necessary":

Accepted Answer

A)  depends on what the adult signed for. 
B)  depends on the minor's station in life. 
C)  doesn't depend on personal circumstances. 
D)  doesn't depend on the minor's age. 
A)  depends on what the adult signed for. 
B)  depends on the minor's station in life. 
C)  doesn't depend on personal circumstances. 
D)  doesn't depend on the minor's age.

Question 8

Minors who successfully disaffirm a contract are not entitled to the return of any consideration they have given the adult party to the contract.

Accepted Answer

A) True 
 B)False

Question 9

With respect to property,under the common law,minors:

Accepted Answer

A)  are entitled to the return of their property given as consideration only upon attaining majority. 
B)  are entitled to the return of their property given as consideration even if they have been ratified. 
C)  are entitled to the return of their property given as consideration, even if that property is possessed by a third party at the time of disaffirmance. 
D)  are entitled to the return of their property given as consideration, except in cases where the property is possessed by a third party. 
A)  are entitled to the return of their property given as consideration only upon attaining majority. 
B)  are entitled to the return of their property given as consideration even if they have been ratified. 
C)  are entitled to the return of their property given as consideration, even if that property is possessed by a third party at the time of disaffirmance. 
D)  are entitled to the return of their property given as consideration, except in cases where the property is possessed by a third party.

Question 10

_____ are generally defined as those things that are essential to a minor's continued existence and general welfare.

Accepted Answer

A)  Considerations 
B)  Emancipations 
C)  Forbearances 
D)  Necessaries 
A)  Considerations 
B)  Emancipations 
C)  Forbearances 
D)  Necessaries

Question 11

A person lacking mental capacity must return the other party to status quo when:

Accepted Answer

A)  the other party becomes aware of the person's lack of mental capacity. 
B)  the person lacking mental capacity has already enjoyed the product of the agreement. 
C)  the other party was unaware of the person's lack of mental capacity. 
D)  the person lacking mental capacity has passed on the product of the agreement to someone else. 
A)  the other party becomes aware of the person's lack of mental capacity. 
B)  the person lacking mental capacity has already enjoyed the product of the agreement. 
C)  the other party was unaware of the person's lack of mental capacity. 
D)  the person lacking mental capacity has passed on the product of the agreement to someone else.

Question 12

Jessica,a minor,rented an apartment in Greenwich Village for $500 a month.She signed a one-year lease.After living there for three months,Jessica decided to move to another apartment complex.She is liable for the reasonable value of three months' rent at Greenwich Village,but not for the remaining nine months' rent.This is in accordance with the _____ provision of capacity to contract by minors.

Accepted Answer

A)  disaffirmation 
B)  necessaries 
C)  emancipation 
D)  adjudication 
A)  disaffirmation 
B)  necessaries 
C)  emancipation 
D)  adjudication

Question 13

With respect to contracts,"status quo ante" refers to:

Accepted Answer

A)  minors losing the right to disaffirm if they fraudulently misrepresent their age. 
B)  the position one would be in if a given contract had never come into existence. 
C)  the basic risks of entering into contracts. 
D)  a minor being protected by law on all counts of misbehavior. 
A)  minors losing the right to disaffirm if they fraudulently misrepresent their age. 
B)  the position one would be in if a given contract had never come into existence. 
C)  the basic risks of entering into contracts. 
D)  a minor being protected by law on all counts of misbehavior.

Question 14

Which of the following terms is used to describe the termination of a parent's right to receive services and wages from a child and to generally control him?

Accepted Answer

A)  Emancipation 
B)  Disaffirmation 
C)  Ratification 
D)  Incapacity 
A)  Emancipation 
B)  Disaffirmation 
C)  Ratification 
D)  Incapacity

Question 15

People who regain their mental capacity:

Accepted Answer

A)  cannot ratify their contracts if the contract involves real estate. 
B)  can ratify their contracts. 
C)  can ratify their contracts only if a guardian signs up along with the person. 
D)  cannot ratify their contracts. 
A)  cannot ratify their contracts if the contract involves real estate. 
B)  can ratify their contracts. 
C)  can ratify their contracts only if a guardian signs up along with the person. 
D)  cannot ratify their contracts.

Question 16

If a court later finds that a person lacked mental capacity at the time the contract was entered into,the contract is _____.

Accepted Answer

A)  not voidable 
B)  voidable 
C)  automatically illegal 
D)  reaffirmed 
A)  not voidable 
B)  voidable 
C)  automatically illegal 
D)  reaffirmed

Question 17

A minor can disaffirm a contract made for _____.

Accepted Answer

A)  real estate 
B)  life insurance 
C)  vocational training 
D)  bank accounts 
A)  real estate 
B)  life insurance 
C)  vocational training 
D)  bank accounts

Question 18

In which of the following situations is a contract considered voidable?

Accepted Answer

A)  When the contract is for necessaries 
B)  When the minor lied about his or her age 
C)  When the contract is ratified on reaching majority 
D)  When there is a lack of capacity because of minority 
A)  When the contract is for necessaries 
B)  When the minor lied about his or her age 
C)  When the contract is ratified on reaching majority 
D)  When there is a lack of capacity because of minority

Question 19

If a person is adjudicated insane,his or her personal representative cannot ratify the contract.

Accepted Answer

A) True 
 B)False

Question 20

In most states,the agreements of people who have been adjudicated insane are _____.

Accepted Answer

A)  valid 
B)  void 
C)  irreversible 
D)  enforceable 
A)  valid 
B)  void 
C)  irreversible 
D)  enforceable

Exam 13: Capacity to Contract

Minors are generally held liable on a quasi contract basis for the reasonable value of necessaries furnished to them.

According to the Uniform Commercial Code,minors whose contracts involve goods can no longer reclaim those goods from innocent third parties.

Which of the following statements is true of contract ratification?

Why are minors held liable on a quasi contract basis for the reasonable value of necessaries furnished to them?

Which of the following is true of emancipation?

Minors are liable for the value of necessaries they have purchased under a contract but have not received at the time they disaffirm.

In a contract involving a minor,whether an item can be considered "necessary":

Minors who successfully disaffirm a contract are not entitled to the return of any consideration they have given the adult party to the contract.

With respect to property,under the common law,minors:

_____ are generally defined as those things that are essential to a minor's continued existence and general welfare.

A person lacking mental capacity must return the other party to status quo when:

With respect to contracts,"status quo ante" refers to:

Which of the following terms is used to describe the termination of a parent's right to receive services and wages from a child and to generally control him?

People who regain their mental capacity:

If a court later finds that a person lacked mental capacity at the time the contract was entered into,the contract is _____.

A minor can disaffirm a contract made for _____.

In which of the following situations is a contract considered voidable?

If a person is adjudicated insane,his or her personal representative cannot ratify the contract.

In most states,the agreements of people who have been adjudicated insane are _____.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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