Biz law Ch 11 & 12 quiz

What is the age of majority in most states?

18

Which of the following is true of a mutual mistake?

A contract entered into based on mutual mistake can be rescinded by either party.

Under which of the following contracts does a minor generally not have the right to disaffirm?

Both life insurance contracts and marriage contracts

Which of the following is a much more visible and active inference with free will than undue influence?

Duress

What type of ratification occurs when a person states that they intend to be bound by a contract entered into as a minor?

Express

An agreement to commit a crime or tort is enforceable by the courts.

False

Covenants not to compete in employment contracts are illegal in most states.

False?

What degree of trust generally exists when a party is able to unduly influence another party?

High

Which of the following will not emancipate a minor?

Moving out of the house but still getting support from parents.

If a party rescinds a contract, what must they do with whatever they received from the other party?

Must return it.

Which type of misrepresentation exists when the party making the statement would have known the truth about the fact had it used reasonable care to discover it?

Negligent misrepresentation

Which one of the following conditions does not generally exist for a mutual mistake to interfere with legal consent?

The mutual mistake is regarding a basic assumption of the subject matter of the contract.

A basic test to determine whether an exculpatory clause is unenforceable is to see if the enforcing party engages in a business indirectly related to the public interest.

True

Which of the following in not generally an obstacle to genuine assent in a contract?

Unilateral mistake

Which of the following businesses cannot enforce an exculpatory clause?

bank

An indivisible contract requires complete performance by __________.

both parties

Under an adhesion contract, negotiations are:

nonexistent

Nondisclosure occurs when a party tries to hide the truth about an important fact of the agreement.

true

Scienter is present when the party accused of making a fraudulent assertion believed that the assertion was false.

true

Taking advantage of one's dominant position in a relationship to unduly persuade the other party is known as __________.

undue influence