Exam 14: Capacity and Legality

In a contract,an exculpatory clause releases a party from liability in the event of monetary or physical injury no matter who is at fault.

Jimenez is an emergency medical technician.Medical personnel such as Jimenez are prohibited by state statute from working more than a certain number of consecutive hours.One month,Jimenez works more than the legal limit.Jimenez can recover for

Odina signs a covenant not to compete with her employer,Penultimate Sales Corporation.A court decides that the covenant is overly restrictive.Depending on the jurisdiction,the court will likely

Becca is a minor.As a minor,Becca

In general,an illegal contract is void.

Rosalind,a seventeen-year-old,signs a contract to sell her car to Street Fleet Used Cars.The next day,Rosalind tells Street Fleet that she's decided not to sell the car.Rosalind is liable to Street Fleet for

A contract with an unlicensed person is enforceable if the person is otherwise of good moral character.

Clothing is a "necessary."

Geri is a minor.Without her parents' knowledge,she signs a contract to buy an airline ticket to Hawaii for spring break.Geri's parents are liable for

If the illegal part of a bargain has not yet been performed,the party rendering performance must fulfill the contract before seeking damages.

Vijay enters into a contract to sell his laptop to Winnie.Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority.Winnie has

A court declares Jimi to be mentally incompetent and appoints Krispin to be his guardian.Later,without Krispin's knowledge,Jimi signs a contract to sell his lake cabin to Lazar for its real market value.The contract is

If a minor can return only damaged goods,the minor cannot disaffirm the contract and obtain a full refund of the purchase price.

Lou and Mike negotiate a deal to transfer stolen body building equipment for counterfeit currency that Mike will attempt to spend at Now! Discount Mart.This contract is

A person who has been determined by a court to be mentally competent cannot form a legally binding contract with another party.

Global Airline,Inc.,is a commercial passenger airline.Global Airline includes on its tickets a clause stating that the airline is not liable for any injury to,or the death of,any passenger caused by its,or its employees',negligence.A Global Airline flight from Los Angeles to New York crashes into Long Island Sound,resulting in the deaths of all passengers.The accident is found to be due to Global Airline's negligence.Based on the clause on its tickets,can Global Airline avoid liability

Intoxicated but still capable of comprehending the consequences of her actions,Cricket signs a contract to sell her phone app design to Downloads,Inc.This contract is

Games Galore Corporation hires Haley,a minor,to create new customized game software for certain clients.Haley signs a contract that requires her to work for Games Galore for eighteen months.Before beginning work,however,Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft,Inc.,a Games Galore competitor.Is Games Galore's contract with Haley enforceable Why or why not

In some states,misrepresentation of age is enough to prevent disaffirmance.

At age seventeen,Daryl enters into a contract to buy a dozen movies from eHD Stream,Inc.,an online video service.Soon after reaching the age of majority,Daryl attempts to disaffirm the contract.eHD files a suit against him.The court will most likely consider the contract ratified if it is