Question 1

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Accepted Answer

A) True 
 B)False

Question 2

Ohio charges Pablo, an architect, a fee to practice his profession in the state. This is

Accepted Answer

A)  ​usurious. 
B)  ​unconscionable. 
C)  ​a license. 
D)  ​exculpatory. 
A)  ​usurious. 
B)  ​unconscionable. 
C)  ​a license. 
D)  ​exculpatory.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Holly, a real estate broker licensed only in Iowa, concludes a sale of farmland in Illinois. Holly can

Accepted Answer

A)  ​collect the commission if it has not been paid. 
B)  ​keep the commission if it has already been paid. 
C)  ​foreclose on the property to obtain any unpaid amount. 
D)  ​none of the choices. 
A)  ​collect the commission if it has not been paid. 
B)  ​keep the commission if it has already been paid. 
C)  ​foreclose on the property to obtain any unpaid amount. 
D)  ​none of the choices.

Question 5

Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is

Accepted Answer

A)  ​unenforceable because Cricket was intoxicated. 
B)  ​enforceable. 
C)  ​unenforceable if Cricket disaffirms it. 
D)  ​unenforceable if Download disaffirms it. 
A)  ​unenforceable because Cricket was intoxicated. 
B)  ​enforceable. 
C)  ​unenforceable if Cricket disaffirms it. 
D)  ​unenforceable if Download disaffirms it.

Question 6

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

Accepted Answer

A)  ​the entire price of the ticket. 
B)  ​no part of the price of the ticket. 
C)  ​up to half of the price of the ticket. 
D)  ​up to two-thirds of the price of the ticket. 
A)  ​the entire price of the ticket. 
B)  ​no part of the price of the ticket. 
C)  ​up to half of the price of the ticket. 
D)  ​up to two-thirds of the price of the ticket.

Question 7

A bargain is unconscionable if it is grossly unfair.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Jeff is seventeen years old. Legally, Jeff is considered

Accepted Answer

A)  ​an adult. 
B)  ​a minor. 
C)  ​ratified. 
D)  ​emancipated. 
A)  ​an adult. 
B)  ​a minor. 
C)  ​ratified. 
D)  ​emancipated.

Question 10

A minor who enters into a contract for necessaries may disaffirm the contract without liability for the value of the goods.

Accepted Answer

A) True 
 B)False

Question 11

Any contract to commit a crime is unenforceable.

Accepted Answer

A) True 
 B)False

Question 12

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

Accepted Answer

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 due to the misrepresentation. 
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 due to the misrepresentation.

Exam 14: Capacity and Legality

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Ohio charges Pablo, an architect, a fee to practice his profession in the state. This is

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

Holly, a real estate broker licensed only in Iowa, concludes a sale of farmland in Illinois. Holly can

Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is

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

A bargain is unconscionable if it is grossly unfair.

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

Jeff is seventeen years old. Legally, Jeff is considered

A minor who enters into a contract for necessaries may disaffirm the contract without liability for the value of the goods.

Any contract to commit a crime is unenforceable.

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may

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