Question 1

All adhesion contracts are unconscionable.

Accepted Answer

A) True 
 B)False  False

Question 2

When one party uses fraud to induce another party to enter into an illegal bargain,the second party will be allowed to recover for the performance or its value.

Accepted Answer

A) True 
 B)False  True

Question 3

Brasilia,a real estate broker licensed only in Connecticut,concludes 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. D

Question 4

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods.

Accepted Answer

A) True 
 B)False

Question 5

A contract entered into by a minor is voidable at the option of either of the contracting parties.

Accepted Answer

A) True 
 B)False

Question 6

Lydia,a minor,charges the cost of a smartphone at a Mobile Devices & Minutes store.Two nights later,Lydia loses the phone at Natural Foods restaurant.She disaffirms the phone's purchase.Lydia owes Mobile Devices the reasonable value of the phone

Accepted Answer

A) if it is deemed a necessary. 
B) if it is deemed a luxury. 
C) if it is deemed unique. 
D) under no circumstances. 
A) if it is deemed a necessary. 
B) if it is deemed a luxury. 
C) if it is deemed unique. 
D) under no circumstances.

Question 7

For business purposes,an adult may petition a court to treat minors as adults.

Accepted Answer

A) True 
 B)False

Question 8

Contracts in restraint of trade usually positively affect the public policy that favors competition in the economy.

Accepted Answer

A) True 
 B)False

Question 9

It is easy to prove that an intoxicated person's judgment was so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

Accepted Answer

A) True 
 B)False

Question 10

Fact Pattern 14-B1 (Questions B14-B15 apply)
Bay City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault.Coco's Chocolate Creations signs a lease with Bay City that contains the clause.
-Refer to Fact pattern 14-B1.The clause is most likely

Accepted Answer

A) enforceable as a matter of public policy. 
B) enforceable if either party is considered to be a business for essential services. 
C) enforceable if the lease also involves residential property. 
D) unenforceable. 
A) enforceable as a matter of public policy. 
B) enforceable if either party is considered to be a business for essential services. 
C) enforceable if the lease also involves residential property. 
D) unenforceable.

Question 11

Fact Pattern 14-B1 (Questions B14-B15 apply)
Bay City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault.Coco's Chocolate Creations signs a lease with Bay City that contains the clause.
-Refer to Fact pattern 14-B1.This clause is

Accepted Answer

A) a covenant not to compete. 
B) an adhesion contract. 
C) an exculpatory clause. 
D) an illusory promise. 
A) a covenant not to compete. 
B) an adhesion contract. 
C) an exculpatory clause. 
D) an illusory promise.

Question 12

Lucy,a minor,disaffirms a contract for necessaries without returning the goods.To Manny's Food Mart,the seller,Lucy is required to pay

Accepted Answer

A) nothing. 
B) the reasonable value of the goods. 
C) the sales price of the goods. 
D) the ultimate worth of the goods. 
A) nothing. 
B) the reasonable value of the goods. 
C) the sales price of the goods. 
D) the ultimate worth of the goods.

Question 13

In certain circumstances,bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

Accepted Answer

A) True 
 B)False

Question 14

A contract entered into by an intoxicated person is never valid.

Accepted Answer

A) True 
 B)False

Question 15

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can

Accepted Answer

A) do nothing with respect to the policy. 
B) enforce the policy or recover the amount of the premiums paid. 
C) only enforce the policy. 
D) only recover the amount of the premiums paid. 
A) do nothing with respect to the policy. 
B) enforce the policy or recover the amount of the premiums paid. 
C) only enforce the policy. 
D) only recover the amount of the premiums paid.

Question 16

Jolie signs a contract with Keaton,an unlicensed physician,to perform 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 17

Duffy and Elbert agree to hijack a truck carrying a load of almonds.Duffy later refuses to go through with the crime.Elbert can

Accepted Answer

A) enforce the agreement. 
B) obtain damages from Duffy in the amount of Duffy's probable share of the illegal profits. 
C) recover in quasi contract for the loss of his share of the illegal profits. 
D) not enforce the agreement or recover damages. 
A) enforce the agreement. 
B) obtain damages from Duffy in the amount of Duffy's probable share of the illegal profits. 
C) recover in quasi contract for the loss of his share of the illegal profits. 
D) not enforce the agreement or recover damages.

Question 18

All states' laws permit minors to disaffirm contracts.

Accepted Answer

A) True 
 B)False

Question 19

In most illegal contracts,both parties are considered to be equally at fault,and neither party can enforce it or recover damages under it.

Accepted Answer

A) True 
 B)False

Question 20

An intoxicated person,after becoming sober,may ratify a contract expressly or impliedly.

Accepted Answer

A) True 
 B)False

Exam 14: Capacity and Legality

All adhesion contracts are unconscionable.

When one party uses fraud to induce another party to enter into an illegal bargain,the second party will be allowed to recover for the performance or its value.

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

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods.

A contract entered into by a minor is voidable at the option of either of the contracting parties.

Lydia,a minor,charges the cost of a smartphone at a Mobile Devices & Minutes store.Two nights later,Lydia loses the phone at Natural Foods restaurant.She disaffirms the phone's purchase.Lydia owes Mobile Devices the reasonable value of the phone

For business purposes,an adult may petition a court to treat minors as adults.

Contracts in restraint of trade usually positively affect the public policy that favors competition in the economy.

It is easy to prove that an intoxicated person's judgment was so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

Lucy,a minor,disaffirms a contract for necessaries without returning the goods.To Manny's Food Mart,the seller,Lucy is required to pay

In certain circumstances,bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

A contract entered into by an intoxicated person is never valid.

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can

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

Duffy and Elbert agree to hijack a truck carrying a load of almonds.Duffy later refuses to go through with the crime.Elbert can

All states' laws permit minors to disaffirm contracts.

In most illegal contracts,both parties are considered to be equally at fault,and neither party can enforce it or recover damages under it.

An intoxicated person,after becoming sober,may ratify a contract expressly or impliedly.

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