Question 1

Any age below the statutory age of majority is called the period of minority.

Accepted Answer

A) True 
 B)False

Question 2

A(n) ________ is a contract that courts refuse to enforce in part or at all because it is so oppressive or manifestly unfair as to be unjust.

Accepted Answer

A)  unconscionable contract 
B)  contract of adhesion 
C)  contract in restraint of trade 
D)  quasi-contract 
A)  unconscionable contract 
B)  contract of adhesion 
C)  contract in restraint of trade 
D)  quasi-contract

Question 3

At common law, parties to an illegal contract were considered in equal fault.

Accepted Answer

A) True 
 B)False

Question 4

A person who has alternating periods of sanity and insanity can enter into contracts ________.

Accepted Answer

A)  when he or she is in a lucid interval 
B)  when there is a legal guardian appointed by the court for that person 
C)  once he or she has been adjudged to be insane 
D)  only once he or she has been adjudged to be legally insane 
A)  when he or she is in a lucid interval 
B)  when there is a legal guardian appointed by the court for that person 
C)  once he or she has been adjudged to be insane 
D)  only once he or she has been adjudged to be legally insane

Question 5

The infancy doctrine gives adults the right to disaffirm contracts entered with minors.

Accepted Answer

A) True 
 B)False

Question 6

After becoming sober, an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Accepted Answer

A) True 
 B)False

Question 7

People below the age of majority are considered minors.

Accepted Answer

A) True 
 B)False

Question 8

What is legal insanity?

Accepted Answer

The law protects people suffering from s

Question 9

________ is the act of a minor after he or she has reached the age of majority, by which he or she accepts a contract entered into when he or she was a minor.

Accepted Answer

A)  Exculpation 
B)  Restitution 
C)  Ratification 
D)  Emancipation 
A)  Exculpation 
B)  Restitution 
C)  Ratification 
D)  Emancipation

Question 10

If both parties to a contract are minors, both parties have the right to disaffirm the contract.

Accepted Answer

A) True 
 B)False

Question 11

If a minor ratifies a contract while still being a minor, the contract cannot be disaffirmed.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following elements has to be proved for a contract to be deemed unconscionable?

Accepted Answer

A)  that the weaker party did not enter the contract under duress 
B)  that the parties had equal bargaining power 
C)  that the dominant party justly used its bargaining power 
D)  that the adhering party had no reasonable alternative 
A)  that the weaker party did not enter the contract under duress 
B)  that the parties had equal bargaining power 
C)  that the dominant party justly used its bargaining power 
D)  that the adhering party had no reasonable alternative

Question 13

Which of the following is true regarding contracts entered into by an intoxicated person?

Accepted Answer

A)  The contract would be void. 
B)  Only the sober party may disaffirm the contract. 
C)  When the intoxicated person becomes sober, he or she may ratify the contract. 
D)  The contract is fully enforceable by the sober party. 
A)  The contract would be void. 
B)  Only the sober party may disaffirm the contract. 
C)  When the intoxicated person becomes sober, he or she may ratify the contract. 
D)  The contract is fully enforceable by the sober party.

Question 14

Lenders can charge interests set higher than the state limit.

Accepted Answer

A) True 
 B)False

Question 15

A minor may not affirm one part of a contract and disaffirm another part.

Accepted Answer

A) True 
 B)False

Question 16

What is the minor's duty of restoration in a disaffirmed contract?

Accepted Answer

Generally, a minor is obligated only to

Question 17

Judges can define morality based on their individual views.

Accepted Answer

A) True 
 B)False

Question 18

Minors are not obligated to pay for the necessaries of life that they contract for.

Accepted Answer

A) True 
 B)False

Question 19

What are gambling statutes?

Accepted Answer

All states either prohibit or regulate g

Question 20

A person who disaffirms a contract based on intoxication must be returned to status quo.

Accepted Answer

A) True 
 B)False

Exam 12: Capacity and Legality

Any age below the statutory age of majority is called the period of minority.

A(n) ________ is a contract that courts refuse to enforce in part or at all because it is so oppressive or manifestly unfair as to be unjust.

At common law, parties to an illegal contract were considered in equal fault.

A person who has alternating periods of sanity and insanity can enter into contracts ________.

The infancy doctrine gives adults the right to disaffirm contracts entered with minors.

After becoming sober, an intoxicated person can ratify the contracts he or she entered into while intoxicated.

People below the age of majority are considered minors.

What is legal insanity?

________ is the act of a minor after he or she has reached the age of majority, by which he or she accepts a contract entered into when he or she was a minor.

If both parties to a contract are minors, both parties have the right to disaffirm the contract.

If a minor ratifies a contract while still being a minor, the contract cannot be disaffirmed.

Which of the following elements has to be proved for a contract to be deemed unconscionable?

Which of the following is true regarding contracts entered into by an intoxicated person?

Lenders can charge interests set higher than the state limit.

A minor may not affirm one part of a contract and disaffirm another part.

What is the minor's duty of restoration in a disaffirmed contract?

Judges can define morality based on their individual views.

Minors are not obligated to pay for the necessaries of life that they contract for.

What are gambling statutes?

A person who disaffirms a contract based on intoxication must be returned to status quo.

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