Question 1

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Accepted Answer

A) True 
 B)False

Question 2

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation,the other party enters into a contract with the minor:

Accepted Answer

A) the minor has lost his right to disaffirm the contract because of the misrepresentation if the adult party in good faith reasonably relied on the misrepresentation. 
B) the adult party can recover damages from the minor in tort. 
C) the minor is required to restore the other party to the position occupied before the making of the contract. 
D) There is no uniform rule. States differ, and depending upon the state, any of the above could be correct. 
A) the minor has lost his right to disaffirm the contract because of the misrepresentation if the adult party in good faith reasonably relied on the misrepresentation. 
B) the adult party can recover damages from the minor in tort. 
C) the minor is required to restore the other party to the position occupied before the making of the contract. 
D) There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

Question 3

If a minor sells property that the buyer then resells to a good faith purchaser for value and the minor then disaffirms the sales contract,under both the traditional view and the UCC,the minor can recover the property from the good faith purchaser for value since the minor has the power of avoidance and both purchasers had only voidable title.

Accepted Answer

A) True 
 B)False

Question 4

Ratification of a contract,once effected,is final and cannot be withdrawn.

Accepted Answer

A) True 
 B)False

Question 5

In most states,determining what is a reasonable time for disaffirmance depends on circumstances rather than a statutorily prescribed time period.

Accepted Answer

A) True 
 B)False

Question 6

To avoid a contract,an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

Accepted Answer

A) True 
 B)False

Question 7

The case of In re The Score Board,Inc.involved the issue of:

Accepted Answer

A) a minor's liability for misrepresentation of age. 
B) whether an incompetent person's contracts are void or voidable. 
C) ratification of a contract upon attaining majority. 
D) liability for necessaries. 
A) a minor's liability for misrepresentation of age. 
B) whether an incompetent person's contracts are void or voidable. 
C) ratification of a contract upon attaining majority. 
D) liability for necessaries.

Question 8

In the Zelnick v.Adams case,the Supreme Court of Virginia found:

Accepted Answer

A) the trial court correctly granted summary judgment, ruling the contingency fee agreement was not binding because Jonathan was a minor when the contract was executed. 
B) the case must be remanded for further proceedings, including the taking of evidence on the issue of the factual determination of necessity under all of the circumstances. 
C) when faced with a defense of infancy, a court has an initial duty to determine, as a matter of fact, whether the things supplied to the infant under a contract were in the general class of "necessaries." 
D) Both (b) and (c). 
A) the trial court correctly granted summary judgment, ruling the contingency fee agreement was not binding because Jonathan was a minor when the contract was executed. 
B) the case must be remanded for further proceedings, including the taking of evidence on the issue of the factual determination of necessity under all of the circumstances. 
C) when faced with a defense of infancy, a court has an initial duty to determine, as a matter of fact, whether the things supplied to the infant under a contract were in the general class of "necessaries." 
D) Both (b) and (c).

Question 9

What is the doctrine of liability for a tort connected with a contract?

Accepted Answer

Minors are generally liable for their to

Question 10

Natalie,age 17,rented a power washer and while using the machine,she negligently damaged it beyond repair.Under the majority view,the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Accepted Answer

A) True 
 B)False

Question 11

If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair,the contract is voidable.

Accepted Answer

A) True 
 B)False

Question 12

In general,if a minor lies about her age in order to induce the seller to contract with her,she cannot disaffirm that contract.

Accepted Answer

A) True 
 B)False

Question 13

Joe is mentally impaired from the effects of a prescribed medication.If he makes a contract while under this impairment,the contract would be voidable if he cannot comprehend the subject of the contract,its nature,and its probable consequences,even if the other party does not know or have reason to know of his mental condition.

Accepted Answer

A) True 
 B)False

Question 14

Under the Uniform Commercial Code,when the minor has sold goods and the buyer has resold them to a good faith purchaser for value:

Accepted Answer

A) the minor can disaffirm and recover the property. 
B) both the purchaser from the minor and the good faith purchaser for value acquire legal title. 
C) the good faith purchaser for value acquires legal title. 
D) the good faith purchaser for value receives a voidable title. 
A) the minor can disaffirm and recover the property. 
B) both the purchaser from the minor and the good faith purchaser for value acquire legal title. 
C) the good faith purchaser for value acquires legal title. 
D) the good faith purchaser for value receives a voidable title.

Question 15

Ratification can occur in which of the following ways?

Accepted Answer

A) Through express language. 
B) As implied from conduct. 
C) Through failure to make a timely disaffirmance. 
D) All of the above. 
A) Through express language. 
B) As implied from conduct. 
C) Through failure to make a timely disaffirmance. 
D) All of the above.

Question 16

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

Accepted Answer

A) True 
 B)False

Question 17

In a contract to sell necessaries to a minor,these goods and services are limited to medical care,food,and shelter.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Accepted Answer

The effect of a court's declaring a pers

Question 19

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Accepted Answer

A) A camera. 
B) School supplies. 
C) Clothing. 
D) An automobile. 
A) A camera. 
B) School supplies. 
C) Clothing. 
D) An automobile.

Question 20

Anna is 88 years old and under the legal guardianship of her daughter.One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy.This contract is:

Accepted Answer

A) valid. 
B) voidable. 
C) void. 
D) unenforceable. 
A) valid. 
B) voidable. 
C) void. 
D) unenforceable.

Exam 14: Contractual Capacity

The doctrine of necessaries applies in the same way to minors and mental incompetents.

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation,the other party enters into a contract with the minor:

Ratification of a contract,once effected,is final and cannot be withdrawn.

In most states,determining what is a reasonable time for disaffirmance depends on circumstances rather than a statutorily prescribed time period.

To avoid a contract,an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

The case of In re The Score Board,Inc.involved the issue of:

In the Zelnick v.Adams case,the Supreme Court of Virginia found:

What is the doctrine of liability for a tort connected with a contract?

Natalie,age 17,rented a power washer and while using the machine,she negligently damaged it beyond repair.Under the majority view,the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair,the contract is voidable.

In general,if a minor lies about her age in order to induce the seller to contract with her,she cannot disaffirm that contract.

Under the Uniform Commercial Code,when the minor has sold goods and the buyer has resold them to a good faith purchaser for value:

Ratification can occur in which of the following ways?

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

In a contract to sell necessaries to a minor,these goods and services are limited to medical care,food,and shelter.

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Anna is 88 years old and under the legal guardianship of her daughter.One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy.This contract is:

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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