Question 1

If an illegal contract is executory,either party can enforce it.

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

A minor may disaffirm a contract only if the subject matter is illegal.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A) the reasonable value of the groceries. 
B) the retail value of the groceries. 
C) the wholesale value of the groceries. 
D) nothing. 
A) the reasonable value of the groceries. 
B) the retail value of the groceries. 
C) the wholesale value of the groceries. 
D) nothing.

Question 5

A contract to commit a crime is a contract and therefore enforceable.

Accepted Answer

A) True 
 B)False

Question 6

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc. ,at more than the average market price.This contract is

Accepted Answer

A) enforceable. 
B) not enforceable because contracting parties can change their minds. 
C) not enforceable because the contract clearly favors Wander Talk. 
D) not enforceable because Uri was intoxicated when he agreed to it. 
A) enforceable. 
B) not enforceable because contracting parties can change their minds. 
C) not enforceable because the contract clearly favors Wander Talk. 
D) not enforceable because Uri was intoxicated when he agreed to it.

Question 7

When both parties to a contract are minors,neither of them may disaf?firm the contract.

Accepted Answer

A) True 
 B)False

Question 8

Jolie signs a contract with Keaton,an unlicensed physician,to perform plastic surgery-a medical procedure.This contract is enforceable by

Accepted Answer

A) Jolie. 
B) Jolie's medical insurance company. 
C) Keaton. 
D) no one. 
A) Jolie. 
B) Jolie's medical insurance company. 
C) Keaton. 
D) no one.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A contract is void if one of the parties was intoxicated at the time of its formation.

Accepted Answer

A) True 
 B)False

Question 11

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000.Cross-Country delivers the crates,but Baldwin does not pay.Cross-Country learns that the crates contained stolen goods.Cross-Country can

Accepted Answer

A) do nothing with respect to the contract. 
B) recover $5,000 from Baldwin. 
C) recover the goods but not the $5,000 from Baldwin. 
D) recover the goods or the $5,000 from Baldwin. 
A) do nothing with respect to the contract. 
B) recover $5,000 from Baldwin. 
C) recover the goods but not the $5,000 from Baldwin. 
D) recover the goods or the $5,000 from Baldwin.

Question 12

Portions of a divisible contract may be enforced.

Accepted Answer

A) True 
 B)False

Question 13

Jenna,a minor acting on her own,signs a contract to buy a horse and its tack from Field Equine Ranch.Later,after taking possession of the horse and tack,Jenna disaffirms the deal.She

Accepted Answer

A) can keep the horse and the tack. 
B) can keep the horse but not the tack. 
C) can keep the tack but not the horse. 
D) must return both the horse and the tack. 
A) can keep the horse and the tack. 
B) can keep the horse but not the tack. 
C) can keep the tack but not the horse. 
D) must return both the horse and the tack.

Question 14

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Accepted Answer

A) True 
 B)False

Question 15

Whether a contract with an unlicensed professional is enforceable depends on the purpose of the statute that requires the license.

Accepted Answer

A) True 
 B)False

Question 16

Baby Products,Inc. ,hires Cole to develop and implement an e-commerce strategy for marketing Baby's products.Cole signs a contract that in?cludes a clause prohibiting him from competing with Baby during and af?ter the employment.Before the strategy is implemented,Cole resigns from Baby's employ and opens a business to compete with Baby.In Baby's suit against Cole,to determine whether Cole may compete with Baby,what is the most important factor the court should consider?

Accepted Answer

In determining whether Cole may compete

Question 17

Delia enters into,and fails to disaffirm soon after reaching the age of ma?jority,a contract with Electronics Stores,Inc.(ESI).Later Delia attempts to disaffirm the contract.ESI files a suit against her.The court will most likely consider the contract ratified if it is

Accepted Answer

A) executed. 
B) exculpatory. 
C) disaffirmed. 
D) rescinded. 
A) executed. 
B) exculpatory. 
C) disaffirmed. 
D) rescinded.

Question 18

Orin relinquishes the right to his daughter Neko's control,care,custody,and earnings.This act is

Accepted Answer

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

Question 19

Jacquie signs a contract to buy a car just before reaching the age of major?ity.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

Accepted Answer

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

Question 20

On Tim's eighteenth birthday,he decides that he no longer wants to keep a car he bought from Woody's Autos,Inc. ,when he was seventeen.His right to disaffirm the deal will depend on

Accepted Answer

A) the car's condition when Tim bought it. 
B) the car's current condition. 
C) whether Tim acts within a reasonable period of time. 
D) whether Woody's has the right to disaffirm. 
A) the car's condition when Tim bought it. 
B) the car's current condition. 
C) whether Tim acts within a reasonable period of time. 
D) whether Woody's has the right to disaffirm.

Exam 13: B: Capacity and Legality

If an illegal contract is executory,either party can enforce it.

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

A minor may disaffirm a contract only if the subject matter is illegal.

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

A contract to commit a crime is a contract and therefore enforceable.

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc. ,at more than the average market price.This contract is

When both parties to a contract are minors,neither of them may disaf?firm the contract.

Jolie signs a contract with Keaton,an unlicensed physician,to perform plastic surgery-a medical procedure.This contract is enforceable by

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

A contract is void if one of the parties was intoxicated at the time of its formation.

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000.Cross-Country delivers the crates,but Baldwin does not pay.Cross-Country learns that the crates contained stolen goods.Cross-Country can

Portions of a divisible contract may be enforced.

Jenna,a minor acting on her own,signs a contract to buy a horse and its tack from Field Equine Ranch.Later,after taking possession of the horse and tack,Jenna disaffirms the deal.She

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Whether a contract with an unlicensed professional is enforceable depends on the purpose of the statute that requires the license.

Delia enters into,and fails to disaffirm soon after reaching the age of ma?jority,a contract with Electronics Stores,Inc.(ESI).Later Delia attempts to disaffirm the contract.ESI files a suit against her.The court will most likely consider the contract ratified if it is

Orin relinquishes the right to his daughter Neko's control,care,custody,and earnings.This act is

Jacquie signs a contract to buy a car just before reaching the age of major?ity.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

On Tim's eighteenth birthday,he decides that he no longer wants to keep a car he bought from Woody's Autos,Inc. ,when he was seventeen.His right to disaffirm the deal will depend on

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge