Quizzes-Law1-Fall2013

Quizzes-Law10-Fall2013

Chp. 13 - Capacity

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

a.    an invalid contract.
b.    an unavoidable contract.
c.    a valid contract.
d.    no contract.    

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

    a.    sixteen.
    b.    eighteen.
    c.    twenty.
    d.    twenty-one.

3.    Stacy, a minor, charges the cost of an expensive leather jacket at a Girl’s Trend store. Two nights later, Stacy loses the jacket at Minors Only Club. She disaffirms the jacket’s purchase. Stacy owes Girl’s Trend the reasonable value of the jacket

    a.    if it is deemed a “necessary.”
    b.    if it is deemed unnecessary.
    c.    under any circumstances.
    d.    under no circumstances.
 

4.    Noni, a seventeen-year-old, signs a contract to sell her car to Metro Used Cars. The next day, Noni tells Metro that she’s decided not to sell the car. Noni is

a.    liable to Metro and must sell it a car of comparable value.
b.    liable to Metro and must sell it her car.
c.    liable to Metro for the amount of its profit on the deal.
d.    not liable to Metro.

  
5.    Roxanne, a minor, is living at home with her parents, but signs a lease with a landlord to rent an apartment. Roxanne can

a.    disaffirm the lease because her parents can be held liable.
b.    disaffirm the lease without liability.
c.    not disaffirm the lease because an apartment is a “necessary.”
d.    not disaffirm the lease because her parents could be liable.
 
 6.    Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack disaffirms the contract, he can most likely recover

    a.    $500.
    b.    $1,000.
    c.    $1,500.
    d.    nothing.
 
 7.    While a minor, Jason buys a large-screen HD TV and home theatre system that he continues to use after reaching the age of majority. After a reasonable time has passed, Jason will be considered to have

    a.    disaffirmed the contract.
    b.    ratified the contract.
    c.    rejected the contract.
    d.    rescinded the contract.
 

 8.    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.    disaffirmance.
b.    emancipation.
c.    ratification.
d.    unconscionable.
 

 9.    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 majority 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

    a.    executed.
    b.    executory.
    c.    express.
    d.    emancipated.

10.    Intoxicated, Clio agrees to sell her restaurant, Diners Café, to Evan for half of its real market value. This deal is most likely voidable if Clio

    a.    appears intoxicated to Evan.
    b.    disaffirms the contract after becoming sober.
    c.    is so intoxicated as to have no memory of the deal.
    d.    is so intoxicated as to lack comprehension of the legal consequences.

11.    Opie enters into a contract with Belle. Later, Opie is adjudged mentally incompetent. Raye, Opie’s daughter, attempts to void Opie’s contract with Belle on the ground of Opie’s incompetency. The contract is

a.    enforceable if Opie had capacity at the time the contract was formed.
b.    enforceable if Belle is also incompetent.
c.    enforceable if Raye knew of the contract when it was formed.
d.    void.

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

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.

13.    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

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.
 

 14.    Koko signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Laurel Valley Medico, Inc., in exchange for a bonus payment. The covenant is most likely enforceable by

a.    both parties.
b.    Koko, but not Laurel Valley.
c.    Laurel Valley, but not Koko.
d.    no one.

 15.    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.    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’.
 
 16.    A contract between Eppie and Fab to lease real property contains an exculpatory clause. This clause is most likely

a.    enforceable as a matter of public policy.
b.    enforceable if either party is in a business for essential services.
c.    enforceable if the lease involves residential property.
d.    unenforceable.
 

 17.    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

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.

18.    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

a.    enforceable.
b.    void.
c.    voidable at the option of Lou or Mike.
d.    voidable at the option of Now!
 

 19.    Desiree signs a contract with Elena to kill Francois. Desiree pays Elena but she refuses to perform. Desiree can

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.

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

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.