Bus law chapter 11

In order for a minor to disaffirm a contract, minor must: a. show an intent to not be bound by the contract b. wait until the minor turns 18 c. stage in writing only his or her intent to not be bound by the contract d. express his or her intent to not be bound by the contract through conduct only

show an intent to not be bound by the contract

In most states, the age of majority for contractual purposes is: a. 17 years for both genders b. 18 years for males and 21 years for females c. 18 years for both genders d. 21 years for both genders

18 years for both genders

Antonio is diagnosed with panic disorder and social phobia, but has not been declared mentally incompetent by a court. Because he is afraid to leave his house, he signed a six-year contract with a company called Your Helping Hands to do all of his grocery shopping and other errands. Antonio's brother hears about it and offers to do all the shopping and errands for Antonio instead. a. Antonio can avoid the contract because of mental incompetence b. Antonio's contract was void from the beginning c. Antonio can avoid the contract if the salesperson knew of his psychiatric diagnosis d. Antonio has a valid contract

Antonio has a valid contract

A judge ruled that Barry was mentally incompetent, placed him in a local mental hospital, and appointed a guardian. Barry escaped from the hospital, went to a used car lot, and purchased a car. In this situation: a. Barry can avoid the contract only if the salesperson knew he was mentally ill b. Barry's contract was void from the start c. Barry cannot avoid the contract d. Barry has a valid contract

Barry's contract was void from the start

After having a few beers, Jeff signed a contract with a client to start a new job. The next day, Jeff had second thoughts and wanted to void the contract. Under which condition would Jeff not be able to avoid the contract? a. If he became intoxicated but it was voluntarily b. If he became intoxicated but the client did not know it c. If he never drinks alcohol and very small amounts cause him to become intoxicated d. If it can be proven that he understood the legal consequences of entering into the contract

If it can be proven that he understood the legal consequences of entering into the contract

Miriam has been adjudged mentally incompetent by a court of law, and a guardian has been appointed for her. Miriam wants to make some changes to her will to make sure that her assets are protected, and she asks her sister for help. How can Miriam legally change her will? a. Miriam cannot be involved in any legally binding actions b. Miriam's inter can enter the contract on her behalf c. Miriam can enter the contract with two witnesses d. Miriam's guardian must enter the contract on her behalf

Miriam's guardian must enter the contract on her behalf

Dana is looking for a new place to live and learns that her friend Penny needs a roommate. Dana takes a bottle of wine when she goes to see Penny. Over a glass of wine, Dana suggests that she move in with Penny, but Penny doesn't think it is a good idea. While Dana is a good friend, Penny doesn't think she would be a good roommate. Dana continues to refill Penny's wine glass, until Penny drinks almost the entire bottle. Dana then convinces Penny to sign a contract allowing Dana to become her roommate. Can Penny avoid the contract? a. Penny can avoid the contract since Dana fraudulently induced her to become intoxicated b. Penny cannot avoid the contract because she got intoxicated voluntarily c. Penny can avoid the contract because a reasonable person would have known she was intoxicated d. Penny cannot avoid the contract because one bottle of wine is not enough alcohol to render a person sufficiently intoxicated to avoid legal duties

Penny can avoid the contract since Dana fraudulently induced her to become intoxicated

The general rule concerning the ability of a minor to disaffirm a contract for necessaries is that the minor: a. must disaffirm before the age of 14 b. can disaffirm only if the subject matter of the contract is illegal c. can disaffirm but will remain liable for the reasonable value of the goods d. can disaffirm only after turning 18

can disaffirm but will remain liable for the reasonable value of the goods

Rena enters into a contract to sell her stamp collection to her younger brother, a minor, when he turns 18. On his 18th birthday, she gives him the collection. He takes the collection from her, but after several months still has not paid her for it. The courts would consider this contract to be: a. executory but ratified b. ratified since it has been executed c. executory but disaffirmed d. disaffirmed since it has been executed

executory but ratified

Darryl goes to the local pub for a business meeting, has seven shots of whiskey, and then signs a contract for the purchase of a business. If he later wants to avoid the contract based on his intoxication, he will need to prove that: a. his capacity to act was unchanged b. he lacked the mental capacity to enter into the contract c. a reasonable person would have known that he was intoxicated d. the business owner knew he was intoxicated

he lacked the mental capacity to enter into the contract

Brad, a 16-year-old, wrecks on his bike and breaks his arm. His friend Beaux drives him to the hospital for emergency medical care, where his arm is set and a cast is applied. Three weeks later, Brad receives a bill and contacts the hospital notifying them he is disaffirming the contract and will not pay the bill. Brad's attempt to avoid payment is: a. ineffective b. void c. effective d. voidable

ineffective

Cara truly believes that she is a space alien from the planet Zelnor. She walks into a car dealership one day and buys a brand-new Volkswagen Jetta, telling the salesperson that she needs a sample of Earthling transportation to beam back to her home planet. If Cara wants to avoid her contract for the purchase of the car at a later date, she must: a. prove that a court had previously judged her to be mentally incompetent b. prove that the salesperson talked her into buying the car c. prove that she lacked adequate mental capacity when she bought the car d. prove that the car dealership did not take adequate precautions to prevent sales to mentally disturbed individuals

prove that she lacked adequate mental capacity when she bought the car

In contract law, the act of accepting and giving legal force to an obligation is known as: a. executory b. disaffirmance c. capacity d. ratification

ratification

To celebrate his 17th birthday, Zack buys a new computer. Two weeks later, his parents insist that he return the computer. Zack's attempt to return the computer will be: a. successful, because he has acted within a reasonable time b. unsuccessful unless he gets court approval c. successful if he pays a fine d. unsuccessful, because he has waited too long

successful, because he has acted within a reasonable time

The general rule with regard to minors who enter into contracts is that: a. all such contracts are void b. some contracts can be avoided by the minor c. such contracts can be avoided by the adult party to the contract d. all such contracts are always enforceable

such contracts can be avoided by the minor

If a mentally incompetent person who has not been adjudged mentally incompetent by a court of law, and can understand the nature and effect of entering into the contract, enters into a contract, the contract is: a. disaffirmed b. valid c. void d. voidable

valid

If a person was intoxicated but understood the legal consequences of entering into a contract, the contract is: a. void at the option of the non-intoxicated person b. voidable c. valid d. void at the option of the intoxicated person

valid

If a person enters into a contract, has been adjudged mentally incompetent by a court of law, and a guardian has been appointed, the contract is: a. ratified b. void c. voidable d. disaffirmed

void

If a mentally incompetent person who has not been adjudged mentally incompetent by a court of law enters into a contract, the contract is a. disaffirmed b. ratified c. void d. voidable

voidable

If a person was sufficiently intoxicated to lack mental capacity to enter into a contact, the transaction is: a. voidable at the option of the non-intoxicated person b. void at the option of the non-intoxicated person c. voidable at the option of the intoxicated person d. void at the option of the intoxicated person

voidable at the option of the intoxicated person