Deck 11: Capacity

Question 1

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.

Answer 1

True

Question 2

In most states,insurance is NOT normally viewed as a necessary by the courts.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

The age of majority in most states is eighteen years.

Question 5

An adult may avoid any contract with a minor.

Question 6

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

Question 7

An "infant" is a legal term for a minor.

Question 8

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

Question 9

A minor may disaffirm a contract only if the subject matter is illegal.

Question 10

In general,minors are personally liable for their contracts.

Question 11

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

Question 12

A minor may enter into a contract for the sale of alcoholic beverages if the other contractual party is an adult.

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

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 20

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

Question 21

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 22

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

Question 23

A person may be able to understand the nature and effect of entering into a certain contract but lack the capacity to engage in other activities.

Question 24

Implied ratification occurs when an individual,on reaching the age of majority,states orally or in writing that she or he intends to be bound by the contract.

Question 25

A person who is intoxicated when he or she signs a contract can void the contract only if the intoxication was involuntary.

Question 26

Financial loans are usually considered to be necessaries.

Question 27

Loans are usually viewed as necessaries if they are obtained for the purpose of purchasing other necessaries,such as food.

Question 28

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.

Question 29

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

Question 30

Parents are ordinarily liable for the contracts made by their minor chil?dren,whether or not they are minors.

Question 31

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

Question 32

Ciera is fifteen.In most states,Ciera would be considered a minor because she is under the age of

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

Question 33

Boyd is a minor.As a minor,Boyd has the capacity to enter into

A)an invalid contract.
B)an unavoidable contract.
C)a valid contract.
D)no contract.

Question 34

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

Question 35

James is sixteen years old.Legally,James is considered

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

Question 36

A mentally incompetent person can enter into legally binding contracts on his or her own behalf.

Question 37

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 38

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 39

Food is one of the things that courts de?fine as a necessary.

Question 40

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

Question 41

Barb,a minor,takes out a loan from City Bank,noting on the loan appli?cation that she plans to use the money to rent an apartment.City makes the loan but does not monitor how the money is spent (and thus fails to learn that Barb uses it to buy an entertainment center).The loan is

A)a necessary that Barb must repay.
B)a necessary but Barb need not repay it.
C)not a necessary but Barb must repay it.
D)not a necessary and Barb need not repay it.

Question 42

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 43

Richard is an adult.He enters into a contract to sell sixteen-year-old Jane his car for $3,000.The next day Richard receives an offer of $4,000 for his car from twenty-year-old Bill.Richard

A)cannot disaffirm his contract with Jane because he is an adult.
B)can disaffirm his contract with Jane because Bill is an adult and contracts with adults take precedence over contracts with minors.
C)cannot disaffirm his contract with Jane because she is a minor.
D)can disaffirm his contract with Jane because the contract has not been ratified.

Question 44

Gaye,a minor,signs a contract to buy a motorcycle from Hi-Valu Cycles by mis?representing her age as twenty-one.Gaye fails to make the pay?ments.Hi-Valu sues.In most states,Gaye can

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

Question 45

Ethan is a minor.He takes out a financial loan and uses the money to buy food.The loan is

A)likely to be considered a necessary.
B)not likely to be considered a necessary.
C)considered a necessary due to the doctrine of promissory estoppel.
D)considered a necessary because Ethan is a minor.

Question 46

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 47

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 48

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 49

Ray is a minor who borrows $1,500 from Savings Bank and buys an in?surance policy from Tristate Insurance Company.Under some circum?stances,Ray can disaffirm the contract for

A)the loan only.
B)the insurance policy only.
C)both the loan and the insurance policy.
D)neither the loan nor the insurance policy.

Question 50

Katie buys a car when she is seventeen.When she is twenty-five,Katie tries to disaffirm the contract and recover all her car payments.A court will likely find that the contract was

A)ratified and Katie cannot recover her payments.
B)not ratified and Katie can recover her payments.
C)not a valid contract because Katie was a minor when she entered into it and she can recover her payments.
D)ratified,but Katie can still recover her payments because she was a minor when she entered into the contract.

Question 51

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

A)disaffirmed the contract.
B)executed the contract.
C)ratified the contract.
D)rescinded the contract.

Question 52

Rita,a minor,signs a contract to buy a sport utility vehicle (SUV) by mis?representing 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 53

Jared is ten years old.He may NOT sign a valid contract for the sale of

A)tobacco.
B)baseball cards.
C)tennis balls.
D)candy bars.

Question 54

Lucy,a minor,disaffirms a contract for necessaries without returning the goods.To Manny's Food Mart,the seller,Lucy is required to pay

A)nothing.
B)the reasonable value of the goods.
C)the sales price of the goods.
D)the ultimate worth of the goods.

Question 55

Olivia,a minor,signs a contract to buy a bike from Phil,the owner of SuperCycles Bike Store.Olivia's right to disaffirm the contract

A)does not change the fact that Phil is bound by the contract.
B)does not yet exist because Olivia is still a minor.
C)gives Phil,an adult,the right to disaffirm the contract.
D)is not valid because a bike is a "necessary."

Question 56

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 57

Neil,a minor,attempts to return to its former owner,a set of skis that he re?cently 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 58

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 59

Ruthie,a minor,charges the cost of an expensive leather jacket at a Girl's Trend store.Two nights later,Ruthie loses the jacket at Minors Only Club.She disaf?firms the jacket's purchase.Ruthie owes Girl's Trend the reasonable value of the jacket

A)if it is deemed a "necessary."
B)if it is deemed unnecessary.
C)under any circumstances.
D)under no circumstances.

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

Colleen is intoxicated,but still mentally capable of understanding the consequences of her actions when she signs a contract to sell the rights to her latest novel to Addie.The contract is

A)enforceable only if Colleen does not attempt to disaffirm it.
B)enforceable even if Colleen attempts to disaffirm it.
C)unenforceable if Addie attempts to disaffirm it.
D)enforceable only if Addie does not attempt to disaffirm it.

Question 62

Carly is a minor.Without her parents' knowledge,she signs a contract to buy an airplane ticket to Hawaii for spring break. Carly's parents are

A)liable for the contract.
B)not liable for the contract.
C)liable for up to half the value of the goods in the contract.
D)liable for up to one third of the value of the goods in the contract.

Question 63

Intoxicated and not aware of the consequences,Uri 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 Uri was intoxicated enough to lack mental capacity when he agreed to it.

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

Delia,a minor,enters into a contract to buy a dozen movies from eHD TV Stream,Inc.,an Internet video service.Soon after reaching the age of ma?jority,Delia attempts to disaffirm the contract.eHD files a suit against her.The court will most likely consider the contract ratified if it is

A)executed.
B)executory.
C)express.
D)emancipated.

Question 66

A court adjudicates Huck mentally incompetent and appoints Inez to be his guard?ian.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

Phil is a minor.He makes many purchases.For which of the following items will Phil be held liable for the reasonable value of the goods?

A)Apples
B)Insurance
C)Baseball cards
D)A car

Question 68

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.

Question 69

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 re?turn the Xbox.Can she cancel the installment agreement? If not why not? If so,are there any conditions?

Question 70

Inventory Control Corporation (ICC) hires Jim,a minor,to create customized software for ICC's clients. Jim signs a contract that requires him to work for ICC for eighteen months. Before beginning work,Jim tells ICC that he will not work for ICC but is going to work for Kwik Kounts,Inc.,an ICC competitor. Is ICC's contract with Jim en?forceable? Why or why not?

Question 71

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 72

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.