Question 1

Orin relinquishes the right to his daughter Neko's control,care,custody,and earnings.This act is

Accepted Answer

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

Question 2

Lindsey,an emergency medical technician,is called to an accident scene by Nicole and renders medical care to Marvin,a mi?nor.Lindsey may recover the cost from

Accepted Answer

A) the state. 
B) Marvin. 
C) Nicole. 
D) no one. 
A) the state. 
B) Marvin. 
C) Nicole. 
D) no one.

Question 3

Federal law bars electronic payments,such as credit-card transactions,at online gambling sites.

Accepted Answer

A) True 
 B)False

Question 4

The lack of an opportunity to read a contract may be unconscionable.

Accepted Answer

A) True 
 B)False

Question 5

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Accepted Answer

A) True 
 B)False

Question 6

A contract is void if one of the parties was intoxicated at the time of its formation.

Accepted Answer

A) True 
 B)False

Question 7

A party who uses the benefits of a contract before paying for them commits usury.

Accepted Answer

A) True 
 B)False

Question 8

If an illegal contract is executory,either party can enforce it.

Accepted Answer

A) True 
 B)False

Question 9

Jenna,a minor acting on her own,signs a contract to buy a horse and its tack from Field Equine Ranch.Later,after taking possession of the horse and tack,Jenna disaffirms the deal.She

Accepted Answer

A) can keep the horse and the tack. 
B) can keep the horse but not the tack. 
C) can keep the tack but not the horse. 
D) must return both the horse and the tack. 
A) can keep the horse and the tack. 
B) can keep the horse but not the tack. 
C) can keep the tack but not the horse. 
D) must return both the horse and the tack.

Question 10

Max,a minor subject to his parents' care and control,signs a contract to rent an apartment from Noel for one year.Before the end of the term,Max moves out.Noel sues for the rent for the rest of the term.Max can

Accepted Answer

A) avoid liability for the rent but not disaffirm the contract. 
B) disaffirm the contract and avoid liability for the rent. 
C) disaffirm the contract but not avoid liability for the rent. 
D) not disaffirm the contract nor avoid liability for the rent. 
A) avoid liability for the rent but not disaffirm the contract. 
B) disaffirm the contract and avoid liability for the rent. 
C) disaffirm the contract but not avoid liability for the rent. 
D) not disaffirm the contract nor avoid liability for the rent.

Question 11

Baby Products,Inc.,hires Cole to develop and implement an e-commerce strategy for marketing Baby's products.Cole signs a contract that in?cludes a clause prohibiting him from competing with Baby during and af?ter the employment.Before the strategy is implemented,Cole resigns from Baby's employ and opens a business to compete with Baby.In Baby's suit against Cole,to determine whether Cole may compete with Baby,what is the most important factor the court should consider?

Accepted Answer

In determining whether Cole may compete

Question 12

Elmo,a minor,misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos.Ordinarily,Elmo can disaffirm the contract

Accepted Answer

A) only if he can prove that Fine New Autos did not know his true age. 
B) only if he can prove that Fine New Autos knew his true age. 
C) under any circumstances. 
D) under no circumstances. 
A) only if he can prove that Fine New Autos did not know his true age. 
B) only if he can prove that Fine New Autos knew his true age. 
C) under any circumstances. 
D) under no circumstances.

Question 13

When a statute protects a certain class of people,a member of that class cannot enforce an otherwise illegal contract.

Accepted Answer

A) True 
 B)False

Question 14

A contract to do something that is prohibited by statutory law is void.

Accepted Answer

A) True 
 B)False

Question 15

Parents are always liable for the contracts made by their minor chil?dren.

Accepted Answer

A) True 
 B)False

Question 16

In an employment contract,a covenant not to compete can be enforceable.

Accepted Answer

A) True 
 B)False

Question 17

Jolie signs a contract with Keaton,an unlicensed physician,to perform plastic surgery-a medical procedure.This contract is enforceable by

Accepted Answer

A) Jolie. 
B) Jolie's medical insurance company. 
C) Keaton. 
D) no one. 
A) Jolie. 
B) Jolie's medical insurance company. 
C) Keaton. 
D) no one.

Question 18

Parents are required by law to provide neces?saries for their minor children.

Accepted Answer

A) True 
 B)False

Question 19

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is

Accepted Answer

A) voidable if Fay has a lucid interval at the time of contracting. 
B) voidable if Fay lacks the capacity to comprehend the consequences. 
C) voidable if the other party does not realize that Fay is incompetent. 
D) unavoidable. 
A) voidable if Fay has a lucid interval at the time of contracting. 
B) voidable if Fay lacks the capacity to comprehend the consequences. 
C) voidable if the other party does not realize that Fay is incompetent. 
D) unavoidable.

Question 20

All contracts between adults and minors are void.

Accepted Answer

A) True 
 B)False

Exam 13: Capacity and Legality

Orin relinquishes the right to his daughter Neko's control,care,custody,and earnings.This act is

Lindsey,an emergency medical technician,is called to an accident scene by Nicole and renders medical care to Marvin,a mi?nor.Lindsey may recover the cost from

Federal law bars electronic payments,such as credit-card transactions,at online gambling sites.

The lack of an opportunity to read a contract may be unconscionable.

Contractual capacity includes the financial ability to pay for the benefits of a contract.

A contract is void if one of the parties was intoxicated at the time of its formation.

A party who uses the benefits of a contract before paying for them commits usury.

If an illegal contract is executory,either party can enforce it.

Jenna,a minor acting on her own,signs a contract to buy a horse and its tack from Field Equine Ranch.Later,after taking possession of the horse and tack,Jenna disaffirms the deal.She

Max,a minor subject to his parents' care and control,signs a contract to rent an apartment from Noel for one year.Before the end of the term,Max moves out.Noel sues for the rent for the rest of the term.Max can

Elmo,a minor,misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos.Ordinarily,Elmo can disaffirm the contract

When a statute protects a certain class of people,a member of that class cannot enforce an otherwise illegal contract.

A contract to do something that is prohibited by statutory law is void.

Parents are always liable for the contracts made by their minor chil?dren.

In an employment contract,a covenant not to compete can be enforceable.

Jolie signs a contract with Keaton,an unlicensed physician,to perform plastic surgery-a medical procedure.This contract is enforceable by

Parents are required by law to provide neces?saries for their minor children.

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is

All contracts between adults and minors are void.

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