Question 1

Generally,when a person of legal age makes a contract with a minor,the contract is voidable by either party.

Accepted Answer

A) True 
 B)False

Question 2

Certain persons cannot make contracts that will bind them.

Accepted Answer

A) True 
 B)False

Question 3

A unilateral mistake as to a fact does not affect the contract when the mistake is unknown to the other contracting party.

Accepted Answer

A) True 
 B)False

Question 4

An incompetent person may ordinarily avoid a contract in the same manner as a minor.

Accepted Answer

A) True 
 B)False

Question 5

A person lacks contractual capacity if:

Accepted Answer

A)  the person is a chronic alcoholic. 
B)  the person is a drug addict. 
C)  because of mental impairment,the person does not comprehend that a contract is being made or understand its consequences. 
D)  all of the above. 
A)  the person is a chronic alcoholic. 
B)  the person is a drug addict. 
C)  because of mental impairment,the person does not comprehend that a contract is being made or understand its consequences. 
D)  all of the above.

Question 6

Roberta,an educated person,purchased real estate from Maurice.Roberta did not read entirely the contract that she signed.As a result,she did not notice the provision in the contract about the interest imposed on the unpaid portion of the purchase price.She refused to pay the interest specified in the contract.Maurice sued her.Could he recover?

Accepted Answer

Yes.Persons ordinarily are bound by cont

Question 7

John,a 17-year-old,purchased a ping-pong table and four new ping-pong paddles.A week after he turned 18,John tried to return the ping-pong paddles.He told the seller that he had decided to keep the table.Can John avoid the contract in this way?

Accepted Answer

John may avoid the contract only by retu

Question 8

When a minor avoids a contract to purchase a car:

Accepted Answer

A)  the parents of the minor are liable for the purchase price. 
B)  a relative who cosigned the contract is liable for the purchase price. 
C)  a friend to whom the minor loaned the car is liable for the purchase price. 
D)  the automobile insurance company is liable for the purchase price. 
A)  the parents of the minor are liable for the purchase price. 
B)  a relative who cosigned the contract is liable for the purchase price. 
C)  a friend to whom the minor loaned the car is liable for the purchase price. 
D)  the automobile insurance company is liable for the purchase price.

Question 9

When necessary medical care is provided to a minor,a parent is liable at common law for the medical expenses provided the minor child.

Accepted Answer

A) True 
 B)False

Question 10

A minor cannot avoid a contract to purchase a car if the:

Accepted Answer

A)  car has been destroyed. 
B)  car has been damaged. 
C)  car is used for non-commercial purposes. 
D)  minor is able to return the car but does not do so. 
A)  car has been destroyed. 
B)  car has been damaged. 
C)  car is used for non-commercial purposes. 
D)  minor is able to return the car but does not do so.

Question 11

Factual incapacity is imposed because of the class or group to which a person belongs.

Accepted Answer

A) True 
 B)False

Question 12

The obligation of a cosigner is discharged by:

Accepted Answer

A)  the minority status of one of the parties. 
B)  the majority status of one of the parties. 
C)  the court's declaration of the contract's provision of necessaries. 
D)  the payment of the debt. 
A)  the minority status of one of the parties. 
B)  the majority status of one of the parties. 
C)  the court's declaration of the contract's provision of necessaries. 
D)  the payment of the debt.

Question 13

An agreement is not binding when:

Accepted Answer

A)  one party makes a mistake regarding a material fact. 
B)  both parties make a mistake regarding a material fact. 
C)  one party makes a mistake of law. 
D)  all of the above. 
A)  one party makes a mistake regarding a material fact. 
B)  both parties make a mistake regarding a material fact. 
C)  one party makes a mistake of law. 
D)  all of the above.

Question 14

Fraud requires a misstatement of either a fact or an opinion.

Accepted Answer

A) True 
 B)False

Question 15

Contractual capacity is the ability to:

Accepted Answer

A)  read and write. 
B)  sign a written contract. 
C)  understand that a contract is being made and to understand its general nature. 
D)  understand the legal meaning of the contract being made. 
A)  read and write. 
B)  sign a written contract. 
C)  understand that a contract is being made and to understand its general nature. 
D)  understand the legal meaning of the contract being made.

Question 16

Ratification consists of any words or conduct of a former minor manifesting an intent to be bound by the terms of a contract made while a minor.

Accepted Answer

A) True 
 B)False

Question 17

As a general rule,the nondisclosure of information that is not asked for does not impose fraud liability or impair the validity of a contract.

Accepted Answer

A) True 
 B)False

Question 18

A party who speaks with a reckless disregard for the truth not knowing of the falsity of his or her words cannot be liable for fraud.

Accepted Answer

A) True 
 B)False

Question 19

The "necessaries" of minors are precisely defined by law.

Accepted Answer

A) True 
 B)False

Question 20

A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract.

Accepted Answer

A) True 
 B)False

Exam 14: Capacity and Genuine Assent

Generally,when a person of legal age makes a contract with a minor,the contract is voidable by either party.

Certain persons cannot make contracts that will bind them.

A unilateral mistake as to a fact does not affect the contract when the mistake is unknown to the other contracting party.

An incompetent person may ordinarily avoid a contract in the same manner as a minor.

A person lacks contractual capacity if:

John,a 17-year-old,purchased a ping-pong table and four new ping-pong paddles.A week after he turned 18,John tried to return the ping-pong paddles.He told the seller that he had decided to keep the table.Can John avoid the contract in this way?

When a minor avoids a contract to purchase a car:

When necessary medical care is provided to a minor,a parent is liable at common law for the medical expenses provided the minor child.

A minor cannot avoid a contract to purchase a car if the:

Factual incapacity is imposed because of the class or group to which a person belongs.

The obligation of a cosigner is discharged by:

An agreement is not binding when:

Fraud requires a misstatement of either a fact or an opinion.

Contractual capacity is the ability to:

Ratification consists of any words or conduct of a former minor manifesting an intent to be bound by the terms of a contract made while a minor.

As a general rule,the nondisclosure of information that is not asked for does not impose fraud liability or impair the validity of a contract.

A party who speaks with a reckless disregard for the truth not knowing of the falsity of his or her words cannot be liable for fraud.

The "necessaries" of minors are precisely defined by law.

A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters