Question 1

The minority of states require that the minor, when effecting a disaffirmance of the contract, pay at least a reasonable amount for the use of the property or the amount by which the property depreciated while in the hands of a minor.

Accepted Answer

A) True 
 B)False

Question 2

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Accepted Answer

A) True 
 B)False

Question 3

In the Keser v. Chagnon case, the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that, since Chagnon had obtained the contract by false representation of his age, he could not recover his full consideration upon disaffirmance.

Accepted Answer

A) True 
 B)False

Question 4

Sixteen-year-old Todd's parents provide adequate food, lodging, and clothing for him, but he sees a sweater he wants and purchases it. In all states, the sweater is considered a necessary since it is an item of clothing.

Accepted Answer

A) True 
 B)False

Question 5

If a minor sells property that the buyer then resells to a good faith purchaser for value and the minor then disaffirms the sales contract, under both the traditional view and the UCC, the minor can recover the property from the good faith purchaser for value since the minor has the power of avoidance and both purchasers had only voidable title.

Accepted Answer

A) True 
 B)False

Question 6

Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn money for college. She has an important interview with a modeling agency and wants to make a good impression, so she withdraws $5,000 from her savings and buys a designer outfit and a fur coat for the interview. A week later, she returns the coat to the department store and says she would like her money back. The store is reluctant to take the items. What are Cheryl's rights? Explain.

Accepted Answer

The answer of Cheryl is a 17-year-old high school student...

Question 7

Ratification can occur in which of the following ways?

Accepted Answer

A)  Through express language. 
B)  As implied from conduct. 
C)  Through failure to make a timely disaffirmance. 
D)  All of these.

Question 8

Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may:

Accepted Answer

A)  avoid her contract with Bruce and recover her laptop. 
B)  not avoid her contract with Bruce and may not recover her laptop. 
C)  register with the UCC filing department and require that if Anna sells the laptop she must give Joanne the rights of first refusal. 
D)  None of these.

Question 9

Ratification of a contract, once effected, is final and cannot be withdrawn.

Accepted Answer

A) True 
 B)False

Question 10

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Accepted Answer

A) True 
 B)False

Question 11

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, is twice the reasonable value of that mobile home. Several months later, Percy wants to disaffirm the contract. If the mobile home is considered a necessary item:

Accepted Answer

A)  Percy can disaffirm the contract based on the wrongful act of the dealer. 
B)  Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. 
C)  Percy is only liable for the reasonable value of the mobile home. 
D)  Percy must keep the mobile home and abide by the original terms of the contract.

Question 12

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

Accepted Answer

A)  If there is a conflict, the store's return policy will override Marsha's right of disaffirmation. 
B)  In most jurisdictions, Marsha may get her money back only if she has not opened or damaged the merchandise in any way. 
C)  In a majority of jurisdictions, Marsha may get her money back even if she cannot return the merchandise. 
D)  In most jurisdictions, Marsha may get some of her money back but she must pay the reasonable value of the goods if that differs from the contract price.

Question 13

Sally goes away to college at 17, lives on her own, and pays her own rent and electric bills. If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.

Accepted Answer

A) True 
 B)False

Question 14

Mel is 17 years old but looks older than 18. He makes a contract to buy a car from Maisie, who is the age of majority. When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age.

Accepted Answer

A) True 
 B)False

Question 15

Discuss a minor's duty to a seller upon disaffirmance of a contract for the sale of goods.

Accepted Answer

The answer of Discuss a minor's duty to a seller...

Question 16

Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of its voluntary nature.

Accepted Answer

A) True 
 B)False

Question 17

Melody, age 17, makes a contract with Seung, who is an adult. Melody:

Accepted Answer

A)  may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. 
B)  may ratify the contract while still a minor, thereby surrendering the power of avoidance. 
C)  has entered a void contract since she lacked capacity. 
D)  may disaffirm only after reaching the age of majority.

Question 18

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive, and she now wishes to cancel the order. Cheryl:

Accepted Answer

A)  must pay $500 for the dress because the dress was specially ordered for her. 
B)  must pay $500 for the dress because clothing is classified as a necessary. 
C)  may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary. 
D)  must accept the dress and pay the reasonable value of the dress.

Question 19

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

Accepted Answer

A) True 
 B)False

Question 20

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

Accepted Answer

The answer of What are the ways in which a...

Exam 14: Contractual Capacity

The minority of states require that the minor, when effecting a disaffirmance of the contract, pay at least a reasonable amount for the use of the property or the amount by which the property depreciated while in the hands of a minor.

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

In the Keser v. Chagnon case, the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that, since Chagnon had obtained the contract by false representation of his age, he could not recover his full consideration upon disaffirmance.

Sixteen-year-old Todd's parents provide adequate food, lodging, and clothing for him, but he sees a sweater he wants and purchases it. In all states, the sweater is considered a necessary since it is an item of clothing.

Ratification can occur in which of the following ways?

Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may:

Ratification of a contract, once effected, is final and cannot be withdrawn.

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, is twice the reasonable value of that mobile home. Several months later, Percy wants to disaffirm the contract. If the mobile home is considered a necessary item:

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

Sally goes away to college at 17, lives on her own, and pays her own rent and electric bills. If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.

Mel is 17 years old but looks older than 18. He makes a contract to buy a car from Maisie, who is the age of majority. When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age.

Discuss a minor's duty to a seller upon disaffirmance of a contract for the sale of goods.

Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of its voluntary nature.

Melody, age 17, makes a contract with Seung, who is an adult. Melody:

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive, and she now wishes to cancel the order. Cheryl:

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.