Exam 13: Capacity and Legality

A covenant not to compete between ongoing businesses is always enforceable.

Parents who sign a contract made by their minor child with an adult have the same option to disaffirm as the child.

When a statute protects a certain class of people, a member of that class cannot enforce an otherwise illegal contract.

Cray returns a digital music player that he bought from Discount City, which re?funds the price. Their exchange involves

Ann, an emergency medical technician, renders medical care to Brad, a minor. Under the ruling of the court in Case 13.1, Yale Diagnostic Radiology v. Estate of Harun, Ann may recover the cost from

A person who enters into a contract when he or she is intoxicated can void the contract only if the intoxication was involuntary.

When a minor disaffirms a contract, he or she can keep whatever prop?erty is in his or her possession as a result of the contract.

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

Max, a minor subject to his parents' care and control, signs a contract to rent an apartment from Noel for one year. Before the end of the term, Max moves out. Noel sues for the rent for the rest of the term. Max can

Odell owns Payroll Company, a bookkeeping service losing market share to Quik Work, Inc. Odell pays Remy $5,000 to steal a list of Quik's clients, to whom Odell will aggressively market Payroll's services. This deal is

Cary is fifteen. In most states, Cary would be considered a minor because she is under the age of

Contractual capacity refers to the legal ability to disaffirm a contract.

Ralph signs a covenant not to compete with his employer, Super Sales Company. A court decides that the covenant is overly restrictive. The court will most likely

Inventory Control Corporation (ICC) hires Jim, a minor, to create customized software for ICC's clients. Jim signs a contract that requires him to work for ICC for eighteen months. Before beginning work, Jim tells ICC that he will not work for ICC but is going to work for Kwik Kounts, Inc., an ICC competitor. Is ICC's contract with Jim en?forceable? Why or why not?

Jack, a minor, takes out an automobile insurance policy and pays a $1,000 pre?mi?um. If Jack disaffirms the contract, he can most likely recover

Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's

A guardian cannot enter into legally binding contracts on behalf of a mentally incompetent person.

Gary, a minor, buys a car from Hot Cars, Inc., in a state in which a duty of restitution is imposed. After wrecking the car, Gary wants to return it. Gary

Parents are required by law to provide neces?saries for their minor children.

Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is