Deck 12: Capacity

Question 1

In some states,misrepresentation of age by a minor is enough to prohibit disaffirmance. 

Answer 1

True

Question 2

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

Answer 2

True

Question 3

The legal duty to pay a reasonable value for necessaries arises from the contract itself. 

Answer 3

False

Question 4

Contractual capacity refers to the legal ability to enter into a contract. 

Question 5

All contracts between adults and minors are void. 

Question 6

A contract entered into by a minor is voidable at the option of either of the contracting parties. 

Question 7

For a minor to disaffirm a contract,he or she must present the contract to a court. 

Question 8

Some states impose a duty on a minor who disaffirms a contract to re-store the adult party to the position he or she held before the con-tract was made. 

Question 9

When both parties to a contract are minors,both of them may disaffirm the contract. 

Question 10

Necessaries are goods and services that fulfill basic needs,such as food,clothing,shelter,and medical services. 

Question 11

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

Question 12

For business purposes,an adult may petition a court to treat minors as adults. 

Question 13

A minor has a reasonable time,after the minor reaches the age of majority,to disaffirm a contract. 

Question 14

When a minor disaffirms a contract,he or she CANNOT keep whatever he or she has received as a result of the contract without paying for it. 

Question 15

The legitimate interests of those who deal with minors are recognized by the duty of restitution. 

Question 16

In some jurisdictions,minors who misrepresent their ages are not liable for the tort of deceit. 

Question 17

Disaffirmance is the legal avoidance,or setting aside,of a contractual obligation. 

Question 18

Contracts formed between parties that lack contractual capacity are usually unenforceable. 

Question 19

The age of majority in most states is eighteen years. 

Question 20

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

Question 21

A person who enters into a contract when he or she is intoxicated can void the contract under any circumstances. 

Question 22

In general,minors are NOT personally liable for their torts. 

Question 23

Becca is a minor.As a minor,Becca​ 

A) ​is not usually legally bound by a contract. 
B) ​has the right to avoid liability under a valid contract. 
C) ​has the capacity to enter into a valid contract. 
D) ​all of the choices.

Question 24

A person who has been determined by a court to be mentally incompetent cannot form a legally binding contract with another party. 

Question 25

James is sixteen years old.Legally,James is considered​ 

A) ​an adult. 
B) ​an infant. 
C) ​insane. 
D) ​incompetent.

Question 26

Food is a "necessary."​ 

Question 27

Parents are always liable for the contracts made by their minor children. 

Question 28

To avoid a contract,an intoxicated person's judgment must be proved to have been so severely impaired that he or she could not comprehend the legal consequences of entering into a contract. 

Question 29

Stella is fifteen.In most states,for contractual purposes,Stella would be considered a minor until she is​ 

A) ​sixteen. 
B) ​eighteen. 
C) ​seventeen. 
D) ​twenty-one.

Question 30

In contract law,ratification is the act of accepting and giving legal force to an obligation that was previously not enforceable. 

Question 31

A contract entered into by an intoxicated person is never valid. 

Question 32

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods. 

Question 33

Clothing is a "necessary."​ 

Question 34

Contracts entered into by mentally incompetent persons can be valid. 

Question 35

If a contract is fully performed by all parties to it,then it is presumed to have been ratified. 

Question 36

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of​ 

A) ​all states. 
B) ​most states. 
C) ​some states. 
D) ​no states.

Question 37

Ordinarily,a minor can disaffirm a contract even though she has misrepresented her age. 

Question 38

If a parent directs a child to commit a tort,then the parent can be held liable for the tort committed by their child. 

Question 39

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

Question 40

In most states,when a person turns eighteen,he or she has reached​ 

A) ​the age of majority. 
B) ​the age of infancy. 
C) ​the age of ratification. 
D) ​the age of competence.

Question 41

Beth is a minor.She purchases a set of sessions with a personal trainer,a water bottle and some weights from a fitness store.Later,Beth decides that she does not want the water bottle or weights.Beth​ 

A) ​can disaffirm the contract and return the water bottle and weights, but keep the training sessions. 
B) ​can only disaffirm the contract if she returns all the goods. 
C) ​cannot disaffirm the contract. 
D) ​can disaffirm the contract and keep all the goods.

Question 42

Vijay enters into a contract to sell his laptop to Winnie.Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority.Winnie has​ 

A) ​expressly ratified the contract. 
B) ​impliedly ratified the contract. 
C) ​disaffirmed the contract. 
D) ​none of the choices.

Question 43

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a land-lord,to rent an apartment.Jody can​ 

A) ​disaffirm the lease because her parents can be held liable for it. 
B) ​disaffirm the lease without liability. 
C) ​not disaffirm the lease because an apartment is a "necessary." 
D) ​not disaffirm the lease because she intended to live on her own.

Question 44

Morgan,a minor,signs a contract to buy a Call4U phone and a monthly calling plan from Sterling,an independent sales representative.Morgan can avoid the contract.Sterling​ 

A) ​can also avoid the contract. 
B) ​cannot avoid the contract. 
C) ​can avoid as much of the contract as Morgan elects to avoid. 
D) ​must obtain Morgan's consent to avoid the contract

Question 45

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

A) ​emancipation. 
B) ​ratification. 
C) ​restitution. 
D) ​misrepresentation.

Question 46

Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching the age of majority.After reaching the age of majority,Fletcher does not take possession or make payments.With respect to the contract,most courts would hold that this is​ 

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

Question 47

Chet,a minor,signs a contract with Porsha,an adult.The contract is​ 

A) ​neither void nor voidable. 
B) ​voidable at the option of Chet. 
C) ​void as a matter of law. 
D) ​voidable at the option of Porsha.

Question 48

Rosalind,a seventeen-year-old,signs a contract to sell her car to Street Fleet Used Cars.The next day,Rosalind tells Street Fleet that she's decided not to sell the car.Rosalind is liable to Street Fleet for​ 

A) ​the cost of a car of comparable value. 
B) ​the value of her performance under the contract. 
C) ​the amount of its profit on the deal. 
D) ​nothing.

Question 49

Alexis,a minor acting on her own,signs a contract to buy motorcycle and accessories from Bad Bikes dealership.Later,after taking possession,Alexis disaffirms the deal.She​ 

A) ​can keep the motorcycle and accessories. 
B) ​can keep the motorcycle but not the accessories. 
C) ​can keep the accessories but not the motorcycle. 
D) ​must return both motorcycle and accessories.

Question 50

Geri is a minor.Without her parents' knowledge,she signs a contract to buy an airline ticket to Hawaii for spring break.Geri's parents are liable for​ 

A) ​the entire price of the ticket. 
B) ​no part of the price of the ticket. 
C) ​up to half of the price of the ticket. 
D) ​up to two-thirds of the price of the ticket.

Question 51

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

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.

Question 52

Nelson,a minor,misrepresents his age when agreeing to a contract to buy a restored,antique soda vending machine from Old Is New Again,Inc.Ordinarily,Nelson can disaffirm the contract​ 

A) ​only if he can prove that the seller did not know his true age. 
B) ​only if he can prove that the seller knew his true age. 
C) ​under any circumstances. 
D) ​under no circumstances.

Question 53

Eli,a minor,buys an automobile insurance policy from Faithful Insurance Company and pays a $1,000 pre-mi-um.If Eli can disaffirm the contract,he can most likely recover​ 

A) ​$500. 
B) ​$1,000. 
C) ​$1,500. 
D) ​nothing.

Question 54

Lydia,a minor,charges the cost of a smartphone at a Mobile Devices & Minutes store.Two nights later,Lydia loses the phone at Natural Foods restaurant.She disaffirms the phone's purchase.Lydia owes Mobile Devices the reasonable value of the phone​ 

A) ​if it is deemed a necessary. 
B) ​if it is deemed a luxury. 
C) ​if it is deemed unique. 
D) ​under no circumstances.

Question 55

Mica,a minor,signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is​ 

A) ​a disaffirmance. 
B) ​an emancipation. 
C) ​a ratification. 
D) ​a restitution.

Question 56

Neil,a minor,attempts to return to its former owner,a set of skis that he recently bought,used,and wrecked,in a state in which a duty of restitution is imposed.Neil​ 

A) ​can return the skis "as is" and avoid further liability. 
B) ​is not required to return the skis due to his or her minority. 
C) ​must return the skis and pay for the damage. 
D) ​cannot return the skis unless they can be fully restored.

Question 57

Rosie,a minor subject to her parents' care and control,signs a contract to rent a lake cabin from Sinclair for one year.Before the end of the term,Rosie moves out.Sinclair sues for the rent for the rest of the term.Rosie can​ 

A) ​avoid liability for the rent but not disaffirm the contract. 
B) ​disaffirm the contract and avoid liability for the rent. 
C) ​disaffirm the contract but not avoid liability for the rent. 
D) ​neither disaffirm the contract nor avoid liability for the rent.

Question 58

Rita,a minor,signs a contract to buy a sport utility vehicle (SUV)by misrepresenting her age to be twenty-one.In most states,Rita may​ 

A) ​disaffirm the contract. 
B) ​disaffirm the contract only if she makes full payment. 
C) ​disaffirm the contract only if she returns the SUV in good condition. 
D) ​not disaffirm the contract.

Question 59

Serenity,a minor,obtains fruits and vegetables on credit from Virgil at Growers' Market.Later,Serenity disaffirms the purchase.Serenity owes Virgil​ 

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

Question 60

Gina,a minor,enters into a contract to buy a tractor from Herb,an adult.If the deal is set aside,restoring Gina and Herb to their original positions prior to a contract is​ 

A) ​ratification. 
B) ​emancipation. 
C) ​disaffirmance. 
D) ​restitution.

Question 61

Intoxicated but fully aware of the consequences,Cory agrees to a two-year service contract with Signal Maintenance,Inc.,at more than the average market price.This contract is​ 

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

Question 62

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

A) ​voidable if Fay has a lucid interval at the time of contracting. 
B) ​voidable if Fay lacks the capacity to comprehend the consequences. 
C) ​voidable if the other party does not realize that Fay is incompetent. 
D) unavoidable.

Question 63

Jill,a minor,buys an Xbox 360 from Kelly's Gaming Store,agreeing to pay the price in seven monthly installments.On the way home,Jill drops the Xbox and it breaks.The next day,she goes to Kelly's to return the Xbox.Can she cancel the installment agreement? If not why not? If so,are there any conditions?​

Question 64

Bob convinces his parents to permit him to become an emancipated mi-nor.On emancipation,Bob will acquire the right to​ 

A) ​buy alcoholic beverages. 
B) ​vote. 
C) ​disaffirm any contract. 
D) ​control his own care, custody, and earnings.

Question 65

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

A) ​Clio appeared intoxicated to Evan. 
B) ​Clio disaffirms the contract after becoming sober. 
C) ​Clio was so intoxicated as to have no memory of the deal. 
D) ​Evan fraudulently induced Clio to become intoxicated.

Question 66

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is​ 

A) ​enforceable if Huck comprehended the consequences. 
B) ​enforceable if Huck knew the market value of the farm. 
C) ​enforceable if Huck was the record owner of the farm. 
D) ​void.

Question 67

Intoxicated and not aware of the consequences,Umberto agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is​ 

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 Umberto was intoxicated enough to lack mental capacity when he agreed to it.

Question 68

Games Galore Corporation hires Haley,a minor,to create new customized game software for certain clients.Haley signs a contract that requires her to work for Games Galore for eighteen months.Before beginning work,however,Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft,Inc.,a Games Galore competitor.Is Games Galore's contract with Haley enforceable? Why or why not?​

Question 69

Gabriella and Esteban are emancipated minors who,after their emancipation,marry each other.Later,they enter into a contract to buy a condominium.In this sequence of events,most likely,their minority status​ 

A) ​terminated on their emancipation. 
B) ​terminated on their marriage. 
C) ​terminated on entering into the contract to buy a condominium. 
D) ​has not yet terminated.

Question 70

On Mitchell's eighteenth birthday,he decides that he no longer wants to keep a fishing boat he bought from Water Craft,Inc.,when he was seventeen.His right to disaffirm the deal will depend on​ 

A) ​why Mitchell no longer wants to keep the boat. 
B) ​why Mitchell entered into the contract to buy the boat. 
C) ​whether Mitchell acts within a reasonable period of time. 
D) ​whether Water Craft has the right to disaffirm.

Question 71

Jerome relinquishes the right to his daughter Meredith's control,care,custody,and earnings.This act is​ 

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

Question 72

Orin enters into a contract with Natalie.Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian.Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the grounds of Orin's incompetency.The contract is​ 

A) ​enforceable if Orin does not attempt to disaffirm it. 
B) ​enforceable if Natalie is also incompetent. 
C) ​enforceable if Moseby knew of the contract when he was appointed. 
D) ​void.