Exam 12: Capacity and Legality

Foremost Company is a national company that installs computers for major corporations.In all of its contracts,there is a clause that states that Foremost is not liable for damages caused by the negligent installation of the computers.Foremost also operates a factory where the computers are made.Many people work in this factory and every employee is required to sign a release whereby Foremost is absolved from any liability for damages caused by its negligence.Discuss the requirements for an exculpatory clause to be valid and discuss whether these two particular clauses are enforceable.

Even though a minor returns goods or property received from the adult at the time the minor disaffirms the contract,the adult is under no duty to place the minor in the status quo.

Fran,a freshman,arrives at college ready to start her first year.Her parents give her $1,000 as an early birthday present because her eighteenth birthday is in October.She purchases the latest appliance from a local store: a compact (size of a file cabinet)combination beer-brewing refrigerator.The compact size allows her to fit it in her dorm room without her Resident Advisor (RA)knowing about it,which is important because such appliances are not allowed in her dorm.Not only is it the size of a file cabinet,it is made to look like one.One hot September afternoon,her RA notices her dispensing a beer and discovers that the file cabinet is in reality a microbrewery.The following conversation takes place: RA: You have 24 hours to get that out of here! Fran: But then it'll be a hassle to get beer. RA: Yeah,I know what you mean.That sure is convenient.How is the beer? Fran: It's pretty good.Better even than Snail Ale or Critter Bitter.If you let me keep this here all year,you can have unlimited access,except when I'm sleeping. RA: It's a deal,so long as you don't tell anyone about it. Fran: O.K. Fran soon becomes the most popular person in her dorm.The people coming and going to her room prompt the RA to tell her just after Thanksgiving that she must remove the appliance at the end of the semester.She sues the RA for breach of contract.Discuss the arguments that each might raise and the court's likely resolution.

A computer that is the subject of a contract has the capability to be programmed to embezzle funds in a way that no other computer is able to do.The contract to sell such a computer:

In order to be enforceable,a covenant not to compete must be reasonable in each of the following aspects EXCEPT:

For a person who has alternating periods of sanity and insanity,any contracts made during a lucid interval are enforceable.

Cedric watches a great number of legal shows on television.As practicing law looks pretty simple,he holds himself out as an attorney and begins drafting wills.He pulls some forms from the internet and prepares a will for Mr.Wilson.Mr.Wilson accepts the will,but later refuses payment.Cedric files a lawsuit on his own behalf.What is the most likely result?

Mary is a bartender at a local pub.The state in which Mary works requires all bartenders to be licensed.No special education or experience is required,but one must pay $25 per year for the license.Mary was not aware of this,so she did not obtain a license.When her boss found out about this,he refused to pay Mary for the two weeks of work that she had done.Mary sues.What results?

What constitutes a necessity for a minor will depend on the particular minor's own individual circumstances.

Sid is a 15-year-old sophomore at East High School.He purchases a computer at a local store for a computer class,but wants to return it after using it for a couple of weeks because his classmates have nicer computers than his and he wants to get one of the better models.Sid can:

A minor may not ratify a contract,as any attempt to do so can be disaffirmed by the minor.

Generally speaking,the contract of a minor:

The contract of a person who has been adjudicated insane,but enters into a contract during a lucid interval,is:

A minor buys a car and continues to drive the car for a reasonable time after reaching majority.This action would constitute a(n):

Don and his son,12 years old,went on a white-water rafting trip.On the way to where they would join the rafting company for the half-day trip,they stopped in a grocery and picked up some food for snacks along the way.Don did not notice the back of the receipt that noted that the store was "not responsible for any loss or injury resulting from the purchase of merchandise." At the rafting company,he signed a release for his son and himself that the rafting company was "not responsible for any injuries,whether caused negligently,intentionally,or otherwise by the company." On the rafting trip,Don's son fell off the raft,and the guide then pushed Don off to retrieve his son.Don and his son suffered injuries.They also got sick from some fried pork rinds that they purchased at the grocery.Discuss the recovery for these injuries.

The adult party to a contract with a minor has the option of choosing whether to enforce the contract.

The doctrine of unconscionability is available in most cases when a party has made a bad bargain.

A noncompete agreement will be found not to violate public policy so long as it meets the required tests for reasonableness.

The most prevalent age of majority for contractual purposes in the United States is 18 years of age for both males and females.

Mary,age 16,buys a car from Friendly Auto Dealers.She pays $1,500 for the car.It turns out that the car is really worth $2,500.Friendly wants to disaffirm the contract and get the car back.Which of the following best describes this situation?