Business Chapter 7.1
If a minor contracts for necessaries, the contract is voidable, and the minor is liable for: a. the reasonable value of whatever has been received. b. none of the goods received. c. only those items he or she can afford. d. twice the market value of the goods received
A
With regard to contracts with minors, _____ means indicating one's willingness to be bound by promises made during minority. a. repudiation b. ratification c. defalcation d. disaffirmance
B
In most states, if a person has been formally adjudicated mentally incompetent, contracts made by that person are _____ without regard to whether they are reasonable or for necessaries. a. ratified b. disaffirmed c. void d. voidable
C
Which of the following is considered the safest way for a businessperson to contract with a minor? a. To make a counteroffer to the original offer b. To have an adult join the contract as a cosigner with the minor c. To have a contract converted into an option d. To have another minor join the contract as a cosigner
B
Many states now allow convicts the capacity to legally contract, with some limitations, such as: a. limiting contracting rights to unilateral contracts. b. banning oral contracts. c. depriving convicts of contracting rights as needed to provide for the security of the penal institution in which they are confined and for reasonable protection of the public. d. forbidding convicts to contract with other convicts.
C
Which of the following is true of contracts of minors? a. A minor cannot avoid or repudiate any contract made with an adult. b. A contract made between two minors is considered invalid. c. A minor is the sole judge as to whether a voidable contract will be binding. d. An adult can avoid a contract with a minor on the basis that the minor might avoid it.
C
Contracts made by people who have become so intoxicated that they cannot understand the meaning of their acts are: a. void. b. rescinded. c. disaffirmed. d. voidable.
D
The term _____ means repudiation of a contract. a. defamation b. ratification c. recognizance d. disaffirmance
D
