Question 1

When a minor disaffirms a contract,he or she can keep whatever prop?erty is in his or her possession as a result of the contract.

Accepted Answer

A) True 
 B)False

Question 2

Bree is a real estate broker licensed only in Minnesota.She concludes a sale in North Dakota on O'Reilly's behalf.Bree's contract with O'Reilly to be paid a certain commission for the sale is

Accepted Answer

A) enforceable if O'Reilly comprehended the consequences. 
B) enforceable if O'Reilly knew Bree was not licensed in North Dakota. 
C) enforceable if the amount of her commission is reasonable. 
D) unenforceable. 
A) enforceable if O'Reilly comprehended the consequences. 
B) enforceable if O'Reilly knew Bree was not licensed in North Dakota. 
C) enforceable if the amount of her commission is reasonable. 
D) unenforceable.

Question 3

Boyd is a minor.As a minor,Boyd has the capacity to enter into

Accepted Answer

A) an invalid contract. 
B) an unavoidable contract. 
C) a valid contract. 
D) no contract. 
A) an invalid contract. 
B) an unavoidable contract. 
C) a valid contract. 
D) no contract.

Question 4

U-Can-Own-It Corporation sells appliances to less educated consumers,including Viv,on installment plans.U-Can-Own-It files a suit against Viv when she stops making payments.Viv claims that the deal is unconscionable.The court will most likely consider

Accepted Answer

A) the geographic area of the relevant market. 
B) the parties' relative bargaining power. 
C) the quality of related products in the general market. 
D) the relation of this deal to those of other customers'. 
A) the geographic area of the relevant market. 
B) the parties' relative bargaining power. 
C) the quality of related products in the general market. 
D) the relation of this deal to those of other customers'.

Question 5

A covenant not to compete can be enforceable if it is part of the sale of an ongoing business.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) enforceable. 
B) void. 
C) voidable at the option of Lou or Mike. 
D) voidable at the option of Now! 
A) enforceable. 
B) void. 
C) voidable at the option of Lou or Mike. 
D) voidable at the option of Now!

Question 7

Clothing is not a "necessary."

Accepted Answer

A) True 
 B)False

Question 8

Solana,a minor,enters into a contract to buy a dozen movies from eHD TV Stream,Inc. ,an Internet video service.Solana reaches the age of ma?jority and does not disaffirm the contract nor make payment on it.eHD files a suit against her.The court will most likely consider the contract ratified if it is

Accepted Answer

A) executed. 
B) executory. 
C) express. 
D) emancipated. 
A) executed. 
B) executory. 
C) express. 
D) emancipated.

Question 9

Regular Insurance Company violates a state statute when selling an insur?ance policy to Simone.As a member of the class of persons protected by the state statute,Simone can

Accepted Answer

A) do nothing with respect to the contract. 
B) enforce the contract or recover the payment. 
C) only enforce the contract. 
D) only recover the payment. 
A) do nothing with respect to the contract. 
B) enforce the contract or recover the payment. 
C) only enforce the contract. 
D) only recover the payment.

Question 10

Contractual capacity refers to the size or volume of a contract.

Accepted Answer

A) True 
 B)False

Question 11

A court adjudicates Huck mentally incompetent and appoints Inez to be his guard?ian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Galen for its real market value.The contract is

Accepted Answer

A) enforceable if Huck comprehended the consequences. 
B) enforceable if Huck knew the market value of the farm. 
C) enforceable if Huck was the record owner of the farm. 
D) void. 
A) enforceable if Huck comprehended the consequences. 
B) enforceable if Huck knew the market value of the farm. 
C) enforceable if Huck was the record owner of the farm. 
D) void.

Question 12

Cary is fifteen.In most states,Cary would be considered a minor because she is under the age of

Accepted Answer

A) sixteen. 
B) eighteen. 
C) twenty. 
D) twenty-one. 
A) sixteen. 
B) eighteen. 
C) twenty. 
D) twenty-one.

Question 13

Boz runs an illegal gambling business and pays Colin,a law enforcement officer,not to interfere.The payments are discovered.Boz and Colin are sent to prison.With respect to the amount of the payments,Boz can recover

Accepted Answer

A) all of it. 
B) none of it. 
C) only as much as Colin has not spent. 
D) only as much as Colin has spent. 
A) all of it. 
B) none of it. 
C) only as much as Colin has not spent. 
D) only as much as Colin has spent.

Question 14

An adult may avoid any contract with a minor.

Accepted Answer

A) True 
 B)False

Question 15

Mica,a minor,signs a contract to pay National Fitness Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is

Accepted Answer

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

Question 16

A party's lack of understanding of contract terms can deprive him or her of any meaningful choice.

Accepted Answer

A) True 
 B)False

Question 17

A contract that exculpates one party for wrongdoing no matter who is at fault can be unconscionable.

Accepted Answer

A) True 
 B)False

Question 18

Inventory Control Corporation (ICC)hires Jim,a minor,to create customized software for ICC's clients.Jim signs a contract that requires him to work for ICC for eighteen months.Before beginning work,Jim tells ICC that he will not work for ICC but is going to work for Kwik Kounts,Inc. ,an ICC competitor.Is ICC's contract with Jim en?forceable? Why or why not?

Accepted Answer

The contract is not enforceable.Jim is a

Question 19

Desiree signs a contract with Elena to kill Francois.Desiree pays Elena but she re?fuses to perform.Desiree can

Accepted Answer

A) do nothing with respect to the contract. 
B) enforce the contract or recover the payment. 
C) only enforce the contract. 
D) only recover the payment. 
A) do nothing with respect to the contract. 
B) enforce the contract or recover the payment. 
C) only enforce the contract. 
D) only recover the payment.

Question 20

A contract with an unlicensed professional is never enforceable.

Accepted Answer

A) True 
 B)False

Exam 13: A: Capacity and Legality

When a minor disaffirms a contract,he or she can keep whatever prop?erty is in his or her possession as a result of the contract.

Bree is a real estate broker licensed only in Minnesota.She concludes a sale in North Dakota on O'Reilly's behalf.Bree's contract with O'Reilly to be paid a certain commission for the sale is

Boyd is a minor.As a minor,Boyd has the capacity to enter into

U-Can-Own-It Corporation sells appliances to less educated consumers,including Viv,on installment plans.U-Can-Own-It files a suit against Viv when she stops making payments.Viv claims that the deal is unconscionable.The court will most likely consider

A covenant not to compete can be enforceable if it is part of the sale of an ongoing business.

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

Clothing is not a "necessary."

Regular Insurance Company violates a state statute when selling an insur?ance policy to Simone.As a member of the class of persons protected by the state statute,Simone can

Contractual capacity refers to the size or volume of a contract.

A court adjudicates Huck mentally incompetent and appoints Inez to be his guard?ian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Galen for its real market value.The contract is

Cary is fifteen.In most states,Cary would be considered a minor because she is under the age of

Boz runs an illegal gambling business and pays Colin,a law enforcement officer,not to interfere.The payments are discovered.Boz and Colin are sent to prison.With respect to the amount of the payments,Boz can recover

An adult may avoid any contract with a minor.

Mica,a minor,signs a contract to pay National Fitness Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is

A party's lack of understanding of contract terms can deprive him or her of any meaningful choice.

A contract that exculpates one party for wrongdoing no matter who is at fault can be unconscionable.

Desiree signs a contract with Elena to kill Francois.Desiree pays Elena but she re?fuses to perform.Desiree can

A contract with an unlicensed professional is never enforceable.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge

B: Liability,defenses,and Discharge