Question 1

Which of the following has the effect of discouraging adults from dealing with minors?

Accepted Answer

A) Ratification 
B) Disaffirmance 
C) Affirmance 
D) Restitution 
A) Ratification 
B) Disaffirmance 
C) Affirmance 
D) Restitution

Question 2

Under the theory that alcohol and drug use should not be rewarded,today most courts say that contracts made by intoxicated people are perfectly binding,no matter how severe the intoxication is.

Accepted Answer

A) True 
 B)False

Question 3

A bargain is considered to be void if a court has ________ a person to be mentally incompetent at the time the bargain was formed.

Accepted Answer

A) ratified 
B) adjudicated 
C) disaffirmed 
D) emancipated 
A) ratified 
B) adjudicated 
C) disaffirmed 
D) emancipated

Question 4

Which of the following contracts is void?

Accepted Answer

A) A contract made by an unemancipated minor. 
B) A contract made by a person who has been adjudicated insane and institutionalized. 
C) A contract made by a person under the influence of mind-altering drugs. 
D) A contract made by a minor who receives no support from a parent or guardian. 
A) A contract made by an unemancipated minor. 
B) A contract made by a person who has been adjudicated insane and institutionalized. 
C) A contract made by a person under the influence of mind-altering drugs. 
D) A contract made by a minor who receives no support from a parent or guardian.

Question 5

On May 1,1985,Mint,a 16-year-old,purchased a sailboat from Sly Boats.Mint used the boat for six months,at which time he advertised it for sale.Which of the following statements is correct?

Accepted Answer

A) The sale of the boat to Mint was void,thereby requiring Mint to return the boat and Sly to return the money received. 
B) Sly Boats has the power to recover the boat from Mint because he has advertised it for sale. 
C) Mint's use of the boat for six months after the sale on May 1 constituted a ratification of that contract. 
D) Mint may disaffirm the May 1 contract at any time prior to or within a reasonable time after reaching majority. 
A) The sale of the boat to Mint was void,thereby requiring Mint to return the boat and Sly to return the money received. 
B) Sly Boats has the power to recover the boat from Mint because he has advertised it for sale. 
C) Mint's use of the boat for six months after the sale on May 1 constituted a ratification of that contract. 
D) Mint may disaffirm the May 1 contract at any time prior to or within a reasonable time after reaching majority.

Question 6

Contract law provides those without the capacity to contract with the right to escape the legal consequences of contracts they enter during incapacity.

Accepted Answer

A) True 
 B)False

Question 7

Ted failed to disaffirm a contract during his minority or within a reasonable time after reaching majority.The contract was automatically:

Accepted Answer

A) ratified. 
B) rescinded. 
C) set aside. 
D) made voidable at the option of the minor. 
A) ratified. 
B) rescinded. 
C) set aside. 
D) made voidable at the option of the minor.

Question 8

What is emancipation?

Accepted Answer

A) Termination of a case of fraud and misrepresentation. 
B) Termination of a bargain that is considered void. 
C) Termination of parental rights to control a child. 
D) Termination of necessaries in a quasi-contractual case. 
A) Termination of a case of fraud and misrepresentation. 
B) Termination of a bargain that is considered void. 
C) Termination of parental rights to control a child. 
D) Termination of necessaries in a quasi-contractual case.

Question 9

Marlene,a self-employed 16-year-old whose parents are deceased,buys a dress on credit for $50.After receiving the dress and discovering that its reasonable value is only $25,Marlene tries to disaffirm the deal before paying the $50.In this case:

Accepted Answer

A) Marlene can disaffirm,and she is bound to pay the full $50. 
B) Marlene can disaffirm,but she is only bound to pay $25. 
C) Marlene can disaffirm,and she can return the dress without paying for it. 
D) Marlene can disaffirm,and she can keep the dress without paying for it. 
A) Marlene can disaffirm,and she is bound to pay the full $50. 
B) Marlene can disaffirm,but she is only bound to pay $25. 
C) Marlene can disaffirm,and she can return the dress without paying for it. 
D) Marlene can disaffirm,and she can keep the dress without paying for it.

Question 10

________ makes any contract valid from its inception and can be done effectively only after a minor reaches majority.

Accepted Answer

A) Disaffirmance 
B) Emancipation 
C) Ratification 
D) Consideration 
A) Disaffirmance 
B) Emancipation 
C) Ratification 
D) Consideration

Exam 14: Capacity to Contract

Which of the following has the effect of discouraging adults from dealing with minors?

Under the theory that alcohol and drug use should not be rewarded,today most courts say that contracts made by intoxicated people are perfectly binding,no matter how severe the intoxication is.

A bargain is considered to be void if a court has ________ a person to be mentally incompetent at the time the bargain was formed.

Which of the following contracts is void?

On May 1,1985,Mint,a 16-year-old,purchased a sailboat from Sly Boats.Mint used the boat for six months,at which time he advertised it for sale.Which of the following statements is correct?

Contract law provides those without the capacity to contract with the right to escape the legal consequences of contracts they enter during incapacity.

Ted failed to disaffirm a contract during his minority or within a reasonable time after reaching majority.The contract was automatically:

What is emancipation?

Marlene,a self-employed 16-year-old whose parents are deceased,buys a dress on credit for $50.After receiving the dress and discovering that its reasonable value is only $25,Marlene tries to disaffirm the deal before paying the $50.In this case:

________ makes any contract valid from its inception and can be done effectively only after a minor reaches majority.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Illegality

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters