BLAW- 3430 Ch. 14 Questions

Which of the following would be a invalid ratification?

17 year old Tom ratifies a contract which he signed two months ago.

Ratification can occur in which of the following ways?

All of the above Lang Implied Failure

Which of the following is least classifiable as a necessity for which a minor will be held liable on a contract?

Cassette tapes.

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive and now wishes to cancel the order.

Cheryl may disaffirm the executory contract because while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary.

The exercise of the power to avoid a contract is known as:

Disaffirmance

Don, a minor, contracts to sell 100 acres of land to Jerry who is also a minor. Don reaches the age of 21 as does Jerry. Don takes no action to avoid the contract. Which of the following most accurately describes the status?

Don had ratified the contract.

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.

Donald has expressly ratified the contract.

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. What result?

Fay is still liable because selling the skis amounts to a ratification.

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

No, if Mark's father bought it without knowing that Mary was a minor.

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:

Percy must keep the mobile home but is only liable for the reasonable value of the mobile home.

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership. Randy sells this truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Which of the following expresses the status of this situation?

Randy may not recover the vehicle form Mr. Smith.

Robert Briscoe is 17 years old. He lies to Bouyers Auto in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, which of the following is correct?

Robert may disaffirm and get his money back.

Which of the following is untrue regarding the contracts of intoxicated persons?

Slight intoxication will destroy one's contractual capacity.

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, what would happen?

Steve may simply return the vehicle and get his money.

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy.

The contract is void.

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor:

There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

To avoid a contract, an intoxicated person must have been intoxicated as to be unable to understand the consequences of his actions OR unable to act in a reasonable manner.

True

Which of the following is untrue regarding the contracts of incompetent persons?

Unlike a minor, an incompetent person can never ratify a contract.

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?

Violet may not disaffirm the contract.

In which of the following situations would a minor be able to disaffirm a contract which he had made?

Where the minor wishes to perform part of a contract and disaffirm another part of the same contarct.

In Dodson v. Shrader, the court stated that when a minor had entered into a contract:

and there has been no overreaching or undue influence, the contract is a fair one, and the minor has paid purchase money and taken the article, he ought not be permitted to recover the amount actually paid without allowing the seller compensation for depreciation.

Wanda at age 17 purchased an expensive stereo system from Stereo Sales. If Wanda wishes to ratify this contract, Wanda:

must reach the age of majority and ratify the contract as a whole.

Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may:

not avoid her contract to Bruce and may not recover her laptop.

The case of In re The Score Board, Inc. involved the issue of:

ratification of a contract upon attaining majority.