Business Law Chapter 9 Review
Any person who drinks an alcoholic beverage lacks the legal capacity to make a valid binding contract.
F
Disaffirmance of a contract has to take place within sixty days once ratification occurs.
F
Minority ends the day after the birthday of the age of majority.
F
Minors are not usually liable for their torts.
F
Minors have contractual capacity.
F
The contract of all those who lack capacity are void.
F
The standard for necessaries cannot vary from one person to another.
F
The three most common necessaries are food, education, and shelter.
F
A disaffirmed contract for a necessary may still be enforced against a minor for a reasonable value.
T
A temporarily intoxicated person who didn't even know she was entering into a contract of marriage could avoid the contract.
T
After the age of majority, the power to disaffirm is immediately cut off if the person ratifies the contract.
T
Generally, a minor who lies to appear in his or her majority loses the right to disaffirm a contract that might result.
T
Incapacitated parties need to pay only the fair market value rather than the contracted price of necessaries.
T
People acting outside the scope of their authority are generally personally liable whenever the organization is not.
T
The party lacking capacity can generally disaffirm contracts for goods and services that are not necessaries; yet the party lacking capacity can enforce them against the party with capacity.
T
When a court decrees a minor emancipated, it is referred to as a. formal emancipation b. informal emancipation c. legal emancipation d. all of these
a
When the consideration by both parties has been returned the contract is said to be a. disaffirmed b. emancipated c. necessary d. ratified
a
Acting toward a contract as though one intends to be bound by it is called a. contractual capacity b. ratification c. disaffirmance d. none of these
b
The severance of the child-parent relationship is referred to as a. disaffirmance b. emancipation c. ratification d. none of these
b
What is the most common age of majority to contract a. 21 b. 18 c. 16 d. 9
b
When a person has the capacity to bind an organization to a contract, they are said to have a. free range b. scope of authority c. both a and b d. none of these
b
A habitual drunkard's contracts are a. valid b. voidable c. void
c
Generally, a person lacking contractual capacity can disaffirm a contract for goods and services that are not necessary a. any time while still under the incapacity b. within a reasonable time after attaining capacity c. both a and b d. none of these
c
Which of the following would most likely be classified as goods or services that were not necessaries? a. car b. clothes c. cosmetics d. food
c
In most states, a minor can get back everything they gave even if a. they are unable to return exactly that was received under the contract b. the goods have been used or damaged c. the goods have been lost, consumed, or destroyed d. all of these
d
Parties who have special contractual rights are a. minors b. the intoxicated c. the mentally incapacitated d. all of these
d
Some contracts of minors that cannot be disaffirmed are a. court-approved contracts b. enlistment in the armed services c. educational loans d. all of these
d
Which of the following contracts can a minor disaffirm in most states a. bank depository contracts b. enlistment contracts in the armed services c. marriage contracts d. none of these
d
A contract for goods or services that are not necessaries entered into while a person is a minor can be disaffirmed a. anytime b. anytime after achieving majoirty c. anytime during minority d. within a reasonable time after achieving majority e. both c and d
e