Exam 16: Capacity and Legality

[Beauty Shop Woes] When Giuseppe hired Ines to work in his beauty shop as a hair stylist,she entered into an agreement with Giuseppe whereby if she left his employment she would not work for another beauty shop within 50 miles for 2 years.Giuseppe trained Ines in a number of new techniques.After nine months,Ines was offered a great job down the street at a new beauty shop.She quit Giuseppe's shop and a number of customers followed her down the street to her new job.Giuseppe claimed that she had signed a contract and had no right to go to work at the new shop.Ines disagreed and told Giuseppe that no judge in the country would enforce such an agreement.Ines then told Giuseppe that she was more worried about a customer who was threatening to sue her because her hair turned green after Ines worked on it.Ines said that she knew that the customer's hair was damaged;but that she told the customer that odd results could result from a dye attempt,and had the customer sign a contract that she released Ines from all liability and would not sue.The customer,however,sued anyway. -Which is the correct term for the agreement Giuseppe and Ines entered?

Because their contracts are ,minors have the right,until a reasonable time after reaching the age of majority,to or void their contracts.

Which of the following is true regarding the obligation of a minor on disaffirmance?

Which of the following is the majority rule regarding a minor's misrepresentation of his or her age?

Which of the following is the correct timeframe during which a disaffirmance of a contract based on minority must occur?

In the Case Opener,Apple customers tried to disaffirm purchases of game currency by their children.What was the result?

[Useless Friend] Antoine and Tevis,are roommates.Antoine has Tevis sign a contract promising to wash Antoine's car once a week for $80 per month in payment.The contract incorporated by reference terms on the back.The terms on the back were in very small print and required Tevis to cook dinner for Antoine,do his laundry,and clean their apartment.Antoine is also very angry with his former girlfriend,Flora,and decides to start rumors that would constitute the tort of defamation.He spreads via SnapChat that Flora cheated on tests and stole from friends.Antoine wants to enlist the help of Tevis in smearing Flora but knows that Tevis would be hesitant to assist in his endeavors.One evening,however,Tevis comes home clearly intoxicated - a fact apparent to Antoine.Antoine has him sign a contract agreeing to defame Flora for $50.When he sobers up,Tevis tells Antoine that he was drunk and that he has no intention of defaming Flora,who also happens to be the best friend of Tevis's new girlfriend.He also finally takes a look at the contract involving work for Antoine and tells Antoine that the contract is outrageous. -Tevis's assertion that he should be able to avoid the contract involving Flora because he was intoxicated,is best supported by which of the following statements,under the Restatement of Contracts,Section 16?

If,after her eighteenth birthday,Cassandra had paid the monthly payment on the financing agreement,would she still have the right to disaffirm the contract?

Which of the following is least likely to be considered a "necessary"?

Which of the following was the result on appeal in Eric Lucier and Karen Haley v.Angela and James Williams,Cambridge Associates Ltd. ,and Al Vasys,the case in the text in which,after finding significant problems with their roof,the plaintiffs claimed that provisions in a home inspection contract illegally limited the liability of the defendants?

Which of the following statements is true about the legality of contracts?

In pari delicto is the term for when both parties are equally responsible for an illegal agreement.

Someone who has been adjudicated insane has no capacity to enter into contracts,and any contract he attempts to enter into is void,even if he has an appointed guardian.

If a contract contains an illegal part,courts will sever the illegal part and enforce only the legal part.

All exculpatory clauses are unlawful.

Which statement applies in the dispute between Rose and Sal's Car Savings,considering that she waited to turn 18 before attempting to disaffirm the contract?

Which of the following is an element of a legally binding contract?

What is the maximum interest rate in the United States?

Under which of the following scenarios might Zeb's contract with SatTV be voidable?

Depending on the size of the print on the back of the contract,which of the following could Tevis possibly use as a defense?