Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 10

Renee Beaver started racing go-karts competitively in 2009, when she was fourteen. Many of the races required her to sign an exculpatory clause, which she or her parents regularly signed. In 2012, right before her birthday, she participated in the annual Elkhart Grand Prix, a series of races in Elkhart, Indiana. During the event in which she drove, a piece of foam padding used as a course barrier was torn from its base and ended up on the track. A portion of the padding struck Beaver in the head, and another portion was thrown into oncoming traffic, causing a multikart collision during which she sustained severe injuries. Beaver filed an action against the race organizers for negligence. The organizers could not locate the exculpatory clause that Beaver was supposed to have signed. Race organizers argued that she must have signed one to enter the race, but even if she had not signed one, her actions showed her intent to be bound by its terms. Using the information presented in the chapter, answer the following questions.
1. Did Beaver have the contractual capacity to enter a contract with an exculpatory clause Why or why not
2. Assuming that Beaver did, in fact, sign the exculpatory clause, did she later disaffirm or ratify the contract Explain.
3. Now assume that Beaver stated that she was eighteen years old at the time that she signed the exculpatory clause. How might this affect Beaver's ability to disaffirm or ratify the contract