Question 1

Katie buys a car when she is seventeen.When she is twenty-five,Katie tries to disaffirm the contract and recover all her car payments.A court will likely find that the contract was

Accepted Answer

A) ratified and Katie cannot recover her payments. 
B) not ratified and Katie can recover her payments. 
C) not a valid contract because Katie was a minor when she entered into it and she can recover her payments. 
D) ratified,but Katie can still recover her payments because she was a minor when she entered into the contract. 
A) ratified and Katie cannot recover her payments. 
B) not ratified and Katie can recover her payments. 
C) not a valid contract because Katie was a minor when she entered into it and she can recover her payments. 
D) ratified,but Katie can still recover her payments because she was a minor when she entered into the contract. A

Question 2

Boyd is a minor.As a minor,Boyd has the capacity to enter into

Accepted Answer

A) an invalid contract. 
B) an unavoidable contract. 
C) a valid contract. 
D) no contract. 
A) an invalid contract. 
B) an unavoidable contract. 
C) a valid contract. 
D) no contract. C

Question 3

Parents are ordinarily liable for the contracts made by their minor chil?dren,whether or not they are minors.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a land?lord,to rent an apartment.Jody can

Accepted Answer

A) disaffirm the lease because her parents can be held liable for it. 
B) disaffirm the lease without liability. 
C) not disaffirm the lease because an apartment is a "necessary." 
D) not disaffirm the lease because she intended to live on her own. 
A) disaffirm the lease because her parents can be held liable for it. 
B) disaffirm the lease without liability. 
C) not disaffirm the lease because an apartment is a "necessary." 
D) not disaffirm the lease because she intended to live on her own.

Question 6

Gina,a minor,enters into a contract to buy a tractor from Herb,an adult.If the deal is set aside,restoring Gina and Herb to their original positions prior to a contract is

Accepted Answer

A) ratification. 
B) emancipation. 
C) disaffirmance. 
D) restitution. 
A) ratification. 
B) emancipation. 
C) disaffirmance. 
D) restitution.

Question 7

A mentally incompetent person can enter into legally binding contracts on his or her own behalf.

Accepted Answer

A) True 
 B)False

Question 8

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 re?turn the Xbox.Can she cancel the installment agreement? If not why not? If so,are there any conditions?

Accepted Answer

Jill can cancel the agreement with Kelly

Question 9

Olivia,a minor,signs a contract to buy a bike from Phil,the owner of SuperCycles Bike Store.Olivia'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 Olivia is still a minor. 
C) gives Phil,an adult,the right to disaffirm the contract. 
D) is not valid because a bike is a "necessary." 
A) does not change the fact that Phil is bound by the contract. 
B) does not yet exist because Olivia is still a minor. 
C) gives Phil,an adult,the right to disaffirm the contract. 
D) is not valid because a bike is a "necessary."

Question 10

Disaffirmance is the legal avoidance,or setting aside,of a contractual obligation.

Accepted Answer

A) True 
 B)False

Question 11

A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.

Accepted Answer

A) True 
 B)False

Question 12

Jared is ten years old.He may NOT sign a valid contract for the sale of

Accepted Answer

A) tobacco. 
B) baseball cards. 
C) tennis balls. 
D) candy bars. 
A) tobacco. 
B) baseball cards. 
C) tennis balls. 
D) candy bars.

Question 13

Eli,a minor,buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 pre?mi?um.If Eli can disaffirm the contract,he can most likely recover

Accepted Answer

A) $500. 
B) $1,000. 
C) $1,500. 
D) nothing. 
A) $500. 
B) $1,000. 
C) $1,500. 
D) nothing.

Question 14

Nora signs a contract to buy a car just before reaching the age of major?ity. After reaching the age of majority,Nora does not take possession or make payments.Most courts would hold that she had

Accepted Answer

A) disaffirmed the contract. 
B) executed the contract. 
C) ratified the contract. 
D) rescinded the contract. 
A) disaffirmed the contract. 
B) executed the contract. 
C) ratified the contract. 
D) rescinded the contract.

Question 15

Food is one of the things that courts de?fine as a necessary.

Accepted Answer

A) True 
 B)False

Question 16

Implied ratification occurs when an individual,on reaching the age of majority,states orally or in writing that she or he intends to be bound by the contract.

Accepted Answer

A) True 
 B)False

Question 17

If a parent directs a child to commit a tort,then the parent can be held liable for the tort committed by their child.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A) True 
 B)False

Question 19

Lucy,a minor,disaffirms a contract for necessaries without returning the goods.To Manny's Food Mart,the seller,Lucy is required to pay

Accepted Answer

A) nothing. 
B) the reasonable value of the goods. 
C) the sales price of the goods. 
D) the ultimate worth of the goods. 
A) nothing. 
B) the reasonable value of the goods. 
C) the sales price of the goods. 
D) the ultimate worth of the goods.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 11: Capacity

Katie buys a car when she is seventeen.When she is twenty-five,Katie tries to disaffirm the contract and recover all her car payments.A court will likely find that the contract was

Boyd is a minor.As a minor,Boyd has the capacity to enter into

Parents are ordinarily liable for the contracts made by their minor chil?dren,whether or not they are minors.

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

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a land?lord,to rent an apartment.Jody can

Gina,a minor,enters into a contract to buy a tractor from Herb,an adult.If the deal is set aside,restoring Gina and Herb to their original positions prior to a contract is

A mentally incompetent person can enter into legally binding contracts on his or her own behalf.

Olivia,a minor,signs a contract to buy a bike from Phil,the owner of SuperCycles Bike Store.Olivia's right to disaffirm the contract

Disaffirmance is the legal avoidance,or setting aside,of a contractual obligation.

A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.

Jared is ten years old.He may NOT sign a valid contract for the sale of

Eli,a minor,buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 pre?mi?um.If Eli can disaffirm the contract,he can most likely recover

Nora signs a contract to buy a car just before reaching the age of major?ity. After reaching the age of majority,Nora does not take possession or make payments.Most courts would hold that she had

Food is one of the things that courts de?fine as a necessary.

Implied ratification occurs when an individual,on reaching the age of majority,states orally or in writing that she or he intends to be bound by the contract.

If a parent directs a child to commit a tort,then the parent can be held liable for the tort committed by their child.

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.

Lucy,a minor,disaffirms a contract for necessaries without returning the goods.To Manny's Food Mart,the seller,Lucy is required to pay

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

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