Exam 13: A: Capacity and Legality

Intoxicated,Clio agrees to sell her restaurant,Diners Café,to Evan for half of its real market value.This deal is most likely voidable if Clio

A court may refuse to enforce an exculpatory clause on the ground that it is unconscionable.

Opie enters into a contract with Belle.Later,Opie is adjudged mentally incompetent.Raye,Opie's daughter,attempts to void Opie's contract with Belle on the ground of Opie's incompetency.The contract is

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

The only purpose of a licensing statute is to protect the public from unlicensed practitioners.

A contract between Eppie and Fab to lease real property contains an ex?cul?patory clause.This clause is most likely

Discriminatory contracts are invalid.

A minor may disaffirm a contract only after attaining the age of majority.

While a minor,Jason buys a large-screen HD TV and home theatre system that he continues to use after reaching the age of majority.After a reasonable time has passed,Jason will be considered to have

A minor may disaffirm a contract for necessaries and avoid li?abil?ity for the reasonable value of the goods.

Ordinarily,a minor who affirmatively misrepresents his or her age cannot disaffirm a contract.

Parents who cosign a contract with a minor have the same option to disaffirm.

Only a guardian can enter into legally binding contracts on behalf of a mentally incompetent person.

An unconscionable contract is a contract entered into unconsciously.

A person who enters into a contract when he or she is intoxicated can void the contract even if he or she understood the legal consequences.

Koko signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Laurel Valley Medico,Inc. ,in exchange for a bonus payment.The covenant is most likely enforceable by

A usurious contract involves the purchase and sale of usable goods.

Noni,a seventeen-year-old,signs a contract to sell her car to Metro Used Cars.The next day,Noni tells Metro that she's decided not to sell the car.Noni is

Airway International,Inc. ,is a commercial passenger airline.Airway includes on its tickets a clause that states the airline is not liable for any injury to,or the death of,any passenger caused by its,or its employees',negligence.An Airway flight from Boston to New York crashes into Long Island sound,resulting in the deaths of all passengers.The cause of the ac?cident is found to be due to Airway's negligence.Based on the clause on its tickets,can Airway avoid liability?

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