Question 1

Dante enters into a contract with Rosalinda,who does not have contractual ca?pacity.Dante can enforce the contract if Rosalinda

Accepted Answer

A) does not choose to avoid the contract. 
B) is a minor. 
C) can obtain the funds to pay for the benefits of the contract. 
D) is intoxicated or men?tally incompetent. 
A) does not choose to avoid the contract. 
B) is a minor. 
C) can obtain the funds to pay for the benefits of the contract. 
D) is intoxicated or men?tally incompetent. A

Question 2

Fernando obtains a consumer loan from Greater Regional Credit Union at an interest rate that exceeds the state's maximum.Greater Regional has

Accepted Answer

A) created a risk for the purpose of assuming it. 
B)  engaged in a restraint of trade. 
C) violated a licensing statute. 
D) committed usury. 
A) created a risk for the purpose of assuming it. 
B)  engaged in a restraint of trade. 
C) violated a licensing statute. 
D) committed usury. D

Question 3

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Accepted Answer

A) valid but may be disaffirmed. 
B) valid but may not be disaffirmed. 
C) void as a matter of law. 
D) void unless it is also signed by Ed,the manager of Dine & Drink. 
A) valid but may be disaffirmed. 
B) valid but may not be disaffirmed. 
C) void as a matter of law. 
D) void unless it is also signed by Ed,the manager of Dine & Drink. C

Question 4

Jacquie signs a contract to buy a car just before reaching the age of major?ity.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

Accepted Answer

A) disaffirmance. 
B) emancipation. 
C) ratification. 
D) rescission. 
A) disaffirmance. 
B) emancipation. 
C) ratification. 
D) rescission.

Question 5

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is

Accepted Answer

A) enforceable. 
B) not enforceable because contracting parties can change their minds. 
C) not enforceable because the contract clearly favors Wander Talk. 
D) not enforceable because Uri was intoxicated when he agreed to it. 
A) enforceable. 
B) not enforceable because contracting parties can change their minds. 
C) not enforceable because the contract clearly favors Wander Talk. 
D) not enforceable because Uri was intoxicated when he agreed to it.

Question 6

In State X,persons must be at least eighteen years old before they can purchase alcoholic beverages.The state also has passed a law requiring that persons who prepare and serve liquor in the form of drinks in com?mercial establishments be licensed.The only requirement for obtaining a yearly license is that the person be at least eighteen years old.Moffitt,aged thirty-five,is hired as a bartender for the Lone Star Restaurant.Bekins,a staunch alumnus of a nearby university,brings twenty of his friends to the restaurant to celebrate a football victory.Bekins has or?dered four rounds of drinks,and the bar bill exceeds $200.Bekins learns that Moffitt has failed to renew his bartender's license,and Bekins re?fuses to pay,claiming the contract is unenforceable.Is Bekins correct?

Accepted Answer

Contracts made with unlicensed persons m

Question 7

Portions of a divisible contract may be enforced.

Accepted Answer

A) True 
 B)False

Question 8

Olga,a minor,signs a contract to buy a computer from Phil,the owner of Quality Computer Store.Olga's right to disaffirm the contract

Accepted Answer

A) does not change the fact that Phil is bound by the contract. 
B) does not yet exist because Olga is still a minor. 
C) gives Phil,an adult,the right to disaffirm the contract. 
D) is not valid because a computer is a "necessary." 
A) does not change the fact that Phil is bound by the contract. 
B) does not yet exist because Olga is still a minor. 
C) gives Phil,an adult,the right to disaffirm the contract. 
D) is not valid because a computer is a "necessary."

Question 9

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Accepted Answer

A) True 
 B)False

Question 10

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000.Cross-Country delivers the crates,but Baldwin does not pay.Cross-Country learns that the crates contained stolen goods.Cross-Country can

Accepted Answer

A) do nothing with respect to the contract. 
B) recover $5,000 from Baldwin. 
C) recover the goods but not the $5,000 from Baldwin. 
D) recover the goods or the $5,000 from Baldwin. 
A) do nothing with respect to the contract. 
B) recover $5,000 from Baldwin. 
C) recover the goods but not the $5,000 from Baldwin. 
D) recover the goods or the $5,000 from Baldwin.

Question 11

Smitty enters into an illegal bargain with Taylor.Smitty can enforce the con?tract or re?cover for its value if he has been induced to enter into the bar?gain as a result of

Accepted Answer

A) fraud. 
B) his desire to obtain the object of the deal. 
C) a persuasive "sell" by Taylor. 
D) his belief that Taylor would do right by him. 
A) fraud. 
B) his desire to obtain the object of the deal. 
C) a persuasive "sell" by Taylor. 
D) his belief that Taylor would do right by him.

Question 12

Brasilia,a real estate broker licensed only in Connecticut,con?cludes a land sale in Delaware.She 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) not collect the commission,keep it,or foreclose on the property. 
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) not collect the commission,keep it,or foreclose on the property.

Question 13

Whether a contract with an unlicensed professional is enforceable depends on the purpose of the statute that requires the license.

Accepted Answer

A) True 
 B)False

Question 14

Delia enters into,and fails to disaffirm soon after reaching the age of ma?jority,a contract with Electronics Stores,Inc.(ESI).Later Delia attempts to disaffirm the contract.ESI files a suit against her.The court will most likely consider the contract ratified if it is

Accepted Answer

A) executed. 
B) exculpatory. 
C) disaffirmed. 
D) rescinded. 
A) executed. 
B) exculpatory. 
C) disaffirmed. 
D) rescinded.

Question 15

When both parties to a contract are minors,neither of them may disaf?firm the contract.

Accepted Answer

A) True 
 B)False

Question 16

A contract to commit a crime is a contract and therefore enforceable.

Accepted Answer

A) True 
 B)False

Question 17

An exculpatory clause in an employment contract is usually enforceable.

Accepted Answer

A) True 
 B)False

Question 18

On Tim's eighteenth birthday,he decides that he no longer wants to keep a car he bought from Woody's Autos,Inc.,when he was seventeen.His right to disaffirm the deal will depend on

Accepted Answer

A) the car's condition when Tim bought it. 
B) the car's current condition. 
C) whether Tim acts within a reasonable period of time. 
D) whether Woody's has the right to disaffirm. 
A) the car's condition when Tim bought it. 
B) the car's current condition. 
C) whether Tim acts within a reasonable period of time. 
D) whether Woody's has the right to disaffirm.

Question 19

Yvon and Zach are minors who marry each other.Their minority status may be terminated under the laws of

Accepted Answer

A) all states. 
B) most states. 
C) some states. 
D) no states. 
A) all states. 
B) most states. 
C) some states. 
D) no states.

Question 20

The age of majority in most states is eighteen years.

Accepted Answer

A) True 
 B)False

Exam 13: Capacity and Legality

Dante enters into a contract with Rosalinda,who does not have contractual ca?pacity.Dante can enforce the contract if Rosalinda

Fernando obtains a consumer loan from Greater Regional Credit Union at an interest rate that exceeds the state's maximum.Greater Regional has

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Jacquie signs a contract to buy a car just before reaching the age of major?ity.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is

Portions of a divisible contract may be enforced.

Olga,a minor,signs a contract to buy a computer from Phil,the owner of Quality Computer Store.Olga's right to disaffirm the contract

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000.Cross-Country delivers the crates,but Baldwin does not pay.Cross-Country learns that the crates contained stolen goods.Cross-Country can

Smitty enters into an illegal bargain with Taylor.Smitty can enforce the con?tract or re?cover for its value if he has been induced to enter into the bar?gain as a result of

Brasilia,a real estate broker licensed only in Connecticut,con?cludes a land sale in Delaware.She can

Whether a contract with an unlicensed professional is enforceable depends on the purpose of the statute that requires the license.

Delia enters into,and fails to disaffirm soon after reaching the age of ma?jority,a contract with Electronics Stores,Inc.(ESI).Later Delia attempts to disaffirm the contract.ESI files a suit against her.The court will most likely consider the contract ratified if it is

When both parties to a contract are minors,neither of them may disaf?firm the contract.

A contract to commit a crime is a contract and therefore enforceable.

An exculpatory clause in an employment contract is usually enforceable.

On Tim's eighteenth birthday,he decides that he no longer wants to keep a car he bought from Woody's Autos,Inc.,when he was seventeen.His right to disaffirm the deal will depend on

Yvon and Zach are minors who marry each other.Their minority status may be terminated under the laws of

The age of majority in most states is eighteen years.

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Mistakes, fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability,defenses,and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment,immigration,and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors,officers, Shareholders

Corporate Merger, consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

Legal and Ethical Considerations in Sustainability, Discovery, and Corporate Behavior

Legal and Ethical Issues in Contemporary Society

Contracts and Agreements

Legal Issues in Iowa's Video Game Labeling Statute, National Export Initiative, and Contract Law

Banking and Loan Liability

Bankruptcy and Agricultural Credit: Debts, Reporting, and Risk

Legal and Ethical Issues in Employment and Agency Relationships

Legal Issues in Business Franchising, LLC Management, Tax Collection, Director Liability, and Securities Regulations

Compliance and Ethics Issues in Business Operations