ACCT 324 Ch. 16

In most states, ______ are liable for a minor's personal torts.

minors, not their parents,

Which of the following is a correct statement regarding a minor's power to disaffirm or void a contract? A minor only has the right to disaffirm any portion of a contract pertaining to the sale of goods. A minor only has the right to disaffirm any portion of a contract pertaining to the provision of services. A minor has the right to disaffirm a portion of a contract. If a minor chooses to disaffirm a contract, he or she must void the entire contract.

If a minor chooses to disaffirm a contract, he or she must void the entire contract.

______ unconscionability occurs when an agreement is overly harsh or lopsided.

Substantive

An agreement presented as the only chance the presented party will have to enter into it is known as a(n) ______ contract.

adhesion

If the purpose of a(n) _______ statute is to provide government control over the profession or generate revenue, most states _______ enforcement of the contract.

allow licensing

Agreements that restrain trade, called ______ agreements, are viewed as being harmful to consumers and against public policy.

anticompetitive

Public policy involves: _______.

both the government's concern for its citizens and the beliefs people hold regarding the proper subject of business transaction

A person who has legal ______ has the ______ ability to understand his or her rights and obligations under a contract.

capacity mental

Upon _______ most states simply require a minor to notify the other party and return any ______ received, regardless of its condition.

consideration disaffirmance

Depending on the nature and extent of the mental or physical _______, a person may have either no capacity, the complete inability to enter into contracts, or limited capacity, the ability to form only ______ contracts.

defect voidable

In most states, a person is given full legal ______ to enter into contracts when she becomes ______ before reaching the age of majority.

emancipated capacity

Covenants not to compete in connection with the sale of a business are generally: _______.

enforceable

Industry officials prefer to use the term ______, rather than gambling, to refer to agreements in which parties pay consideration for the chance, or opportunity, to obtain an amount of money or property.

gaming

According to the legal principle of ______ both contracting parties are equally responsible for an illegal agreement.

in pari delicto

Heavily _______ contracts are known as ______ agreements.

one-sided unconscionable

An agreement in violation of a statute or legal code is illegal: ______.

per se.

The public policy argument in favor of supporting the enforceability of a(n) _______ covenant regarding the sale of a business involves the ______ of the sale

restrictive fairness

To be enforceable, contracts must have legal ______ matter and must be able to be performed _______.

subject legally

Generally, contracts made by intoxicated persons are ______.

voidable