Smith and Roberson's Business Law 16th Edition by Richard Mann,Barry Roberts

Exercise 22

D. Robertson bought a pickup truck from King and Julian, doing business as the Julian Pontiac Company. Robertson, at the time of purchase, was seventeen years old, living at home with his parents, and driving his father's truck around the county to different constru ctionjobs. According to the sales contract, he traded in a passenger car for the truck and was given $2,723 credit toward the truck's $6,743 purchase price, agreeing to pay the remainder in monthly installments. After he paid the first month's installment, the truck caught fire and was rendered useless. The insurance agent, upon finding that Robertson was a minor, refused to deal with him. Consequently, Robertson sued to exercise his right as a minor to rescind the contract and to recover the purchase price he had already paid ($2,723 credit for the car plus the one month's installment). The defendants argue that Robertson, even as a minor, cannot rescind the contract as it was for a necessary item. Are they correct?