Question 1

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Accepted Answer

A) valid but may be disaffirmed. 
B) valid but may not be disaffirmed. 
C) void as a matter of law. 
D) void unless it is also signed by Edie,the manager of Dine & Drink. 
A) valid but may be disaffirmed. 
B) valid but may not be disaffirmed. 
C) void as a matter of law. 
D) void unless it is also signed by Edie,the manager of Dine & Drink. C

Question 2

Elle,a minor acting on her own,signs a contract to buy a horse from Field Equine Ranch.Later,Elle disaffirms the deal.Liability most likely rests with

Accepted Answer

A) Elle and her parents. 
B) Elle only. 
C) Elle's parents only. 
D) neither Elle nor her parents. 
A) Elle and her parents. 
B) Elle only. 
C) Elle's parents only. 
D) neither Elle nor her parents. D

Question 3

A covenant not to compete is never enforceable.

Accepted Answer

A) True 
 B)False  False

Question 4

Parents are required by law to provide necessaries for their minor children.

Accepted Answer

A) True 
 B)False

Question 5

Most courts are usually very concerned about the fairness of contracts.

Accepted Answer

A) True 
 B)False

Question 6

A minor may accept and validate a contract with an adult.

Accepted Answer

A) True 
 B)False

Question 7

A contract with an unlicensed professional is always enforceable.

Accepted Answer

A) True 
 B)False

Question 8

Some states provide for the termination of minority status on marriage.

Accepted Answer

A) True 
 B)False

Question 9

Betty,a minor,signs a contract to buy an SUV by misrepresenting her age to be twenty-one.In most states,Betty may

Accepted Answer

A) disaffirm the contract. 
B) disaffirm the contract only if she first makes full payment. 
C) disaffirm the contract only if she returns the SUV in orig?inal condition. 
D) not disaffirm the contract. 
A) disaffirm the contract. 
B) disaffirm the contract only if she first makes full payment. 
C) disaffirm the contract only if she returns the SUV in orig?inal condition. 
D) not disaffirm the contract.

Question 10

Clay,a minor,signs a contract to buy a car from Delta Motors by mis?repre?senting his age as twenty-one.Clay fails to make the pay?ments.Delta sues.In most states,Clay can

Accepted Answer

A) not return the car nor avoid further liability. 
B) not return the car but can avoid further liability. 
C) return the car and avoid further liability. 
D) return the car but cannot avoid further liability. 
A) not return the car nor avoid further liability. 
B) not return the car but can avoid further liability. 
C) return the car and avoid further liability. 
D) return the car but cannot avoid further liability.

Question 11

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 12

John agrees to sell his sports equipment store to Kay and,as part of the sale,promises not to open a similar store in the United States for twenty years.John's promise is

Accepted Answer

A) an unreasonable restraint of trade like all covenants not to compete. 
B) unreasonable in terms of geographic area and time. 
C) unreasonable in terms of Kay's "goodwill" and "reputation." 
D) valid and enforceable. 
A) an unreasonable restraint of trade like all covenants not to compete. 
B) unreasonable in terms of geographic area and time. 
C) unreasonable in terms of Kay's "goodwill" and "reputation." 
D) valid and enforceable.

Question 13

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 14

While intoxicated,Tim contracts to buy a bicycle for double its normal price.The contract is

Accepted Answer

A) enforceable even if Tim did not understand its legal consequences. 
B) enforceable only if Tim understood its legal consequences. 
C) unenforceable because it obviously favors the other party. 
D) unenforceable under any circumstances. 
A) enforceable even if Tim did not understand its legal consequences. 
B) enforceable only if Tim understood its legal consequences. 
C) unenforceable because it obviously favors the other party. 
D) unenforceable under any circumstances.

Question 15

Marco convinces his parents to permit him to become an emancipated minor.On emancipation,Marco will acquire the right to

Accepted Answer

A) buy alcoholic beverages only. 
B) buy alcoholic beverages and vote. 
C) neither buy alcoholic beverages nor vote. 
D) vote only. 
A) buy alcoholic beverages only. 
B) buy alcoholic beverages and vote. 
C) neither buy alcoholic beverages nor vote. 
D) vote only.

Question 16

Parents are ordinarily liable for the contracts made by their minor children,whether or not the children acted on their own.

Accepted Answer

A) True 
 B)False

Question 17

In general,minors are not held personally liable for their contracts.

Accepted Answer

A) True 
 B)False

Question 18

Airway International,Inc. ,is a commercial passenger airline.Airway in?cludes on its tickets a clause that states the airline is not liable for any in?jury to,or the death of,any passenger caused by its,or its employees',neg?ligence.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?

Accepted Answer

Airway cannot avoid liability for the de

Question 19

A contract in which the stronger party dictates the terms is an adhesion contract.

Accepted Answer

A) True 
 B)False

Question 20

If a minor disaffirms a contract,he or she must disaffirm the entire contract.

Accepted Answer

A) True 
 B)False

Exam 9: Capacity and Legality

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Elle,a minor acting on her own,signs a contract to buy a horse from Field Equine Ranch.Later,Elle disaffirms the deal.Liability most likely rests with

A covenant not to compete is never enforceable.

Parents are required by law to provide necessaries for their minor children.

Most courts are usually very concerned about the fairness of contracts.

A minor may accept and validate a contract with an adult.

A contract with an unlicensed professional is always enforceable.

Some states provide for the termination of minority status on marriage.

Betty,a minor,signs a contract to buy an SUV by misrepresenting her age to be twenty-one.In most states,Betty may

Clay,a minor,signs a contract to buy a car from Delta Motors by mis?repre?senting his age as twenty-one.Clay fails to make the pay?ments.Delta sues.In most states,Clay can

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

John agrees to sell his sports equipment store to Kay and,as part of the sale,promises not to open a similar store in the United States for twenty years.John's promise is

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.

While intoxicated,Tim contracts to buy a bicycle for double its normal price.The contract is

Marco convinces his parents to permit him to become an emancipated minor.On emancipation,Marco will acquire the right to

Parents are ordinarily liable for the contracts made by their minor children,whether or not the children acted on their own.

In general,minors are not held personally liable for their contracts.

A contract in which the stronger party dictates the terms is an adhesion contract.

If a minor disaffirms a contract,he or she must disaffirm the entire contract.

The Legal and Constitutional Environment of Business

Traditional and Online Dispute Resolution

Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

Criminal Law and Cyber Crimes

Nature and Classification

Agreement and Consideration

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

E-Contracts and E-Signatures

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

Negotiability, transferability, and Liability

Checks and Banking in the Digital Age

Security Interest in Personal Property

Creditors Rights and Bankruptcy

Agency Relationships

Employment Law and Immigration

Sole Proprietorships, partnerships, Ltd Liability

Corporate Formation, financing, and Termination

Corporate Directors, officers, and Shareholders

Investor Protection, insider Trading, Corpgov

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants Other Professionals

International Law in a Global Economy

Regulations, Contracts, and Discovery

Legal Issues in Business and Commerce

Legal Issues in Online Relationships and Agreements

Contracts and Consumer Protection

Liability of Silverado Bank in Prestridge v. Bank of Jena for Forged Checks.

Sovereign Immunity and Bankruptcy Law

Legal Issues in Employment and Liability Cases

Corporate Governance and Securities Law

Real Estate Law: Cases and Controversies

Corporate Ownership and Liability in Chilean Firms

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