Business Law Final Exam Review

Which of the following contractual duties would generally not be delegable?

Contract for a famous artist to paint a portrait.

If a person is intoxicated when signing a contract, they may not back out of the contract based on being intoxicated because being intoxicated is a voluntary condition.

False

If an offeree makes a mistake and sends an acceptance to the wrong address, there is an acceptance upon dispatch.

False

Liquidated damages will be enforced based upon the free-will concept of contracts, even if the liquidated damages amount is unreasonable.

False

Once a young person reaches the age of majority and ratifies a contract made as a minor, he or she has a reasonable period of time to void the contract.

False

Parents are responsible for the torts committed by their minor children in all states.

False

Rewriting a contract to reflect what the parties had agreed on is referred to as rescission.

False

Which of the following is not an element necessary to show a mutual mistake in a contract?

The mistake was so serious that the contract is unconscionable, that is, so unreasonable that it is outrageous.

A detriment to a promisor is a type of consideration.

True

An illusory promise is not consideration.

True

The purpose of a covenant not to compete, in the employer/employee context, is to restrict what an employee may do after leaving a company.

True

The response that the offeror expects from the offeree determines whether a contract is bilateral or unilateral.

True

The statute of frauds includes in its scope contracts related to an interest in land.

True

Which of the following types of agreements is not a type of agreement that is generally illegal in many states?

Agreements for the sale of a used product.

In contract law, a(n) _____________ is an erroneous belief about the facts of the contract at the time the contract is concluded.

mistake of fact

Holding all other variables constant, the following agreements are required by the statute of frauds to be evidenced in writing except

mutual promises to marry.

When the courts deem a contract integrated, parol evidence is generally _________________.

inadmissible

A promise to stop doing something in the future is not valid consideration.

False

In determining whether a party is an incidental or intended beneficiary, one factor courts consider is whether the contract directly states that the third party is the benefiting party.

True

In some cases, the court may enforce the promise if past consideration was given with expectation of future payment.

True

The active hiding of the truth about a material fact is called nondisclosure

False

The court will never look at adequacy of consideration.

False

The test for compliance with the one-year rule considers which of the following?

The possibility of completing the contract within one year.

The effect of both _____________ and ____________ is that the victim can either rescind the contract or keep the contract and sue for damages.

negligent misrepresentation; fraudulent misrepresentation

There is federal U.S. legislation titled "Statute of Frauds".

False

There is no requirement that enrichment be unjust in order to recover under quasi-contract.

False

There is only one situation in which a third party gains rights to a contract.

False

If no means of communicating the acceptance is specified, what type of means of accepting is generally not acceptable?

All of these are generally acceptable ways to communicate an acceptance: Telephone, Mail, E-mail, and Fax

Any contract that is not a formal contract is an informal contract, also called a simple contract.

True

As a general rule, parents are not liable for contracts entered into by their minor children.

True

Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________.

illusory promise

In a(n) ______________ , the seller is treated as making an offer to accept the highest bid and therefore must accept it.

auction without reserve

In which of the following situations would the contract in question be void?

An individual who has been adjudicated insane enters into a contract.

A material breach does not discharge the non-breaching party from his obligations under the contract.

False

A promise to do something that you are already obligated to do is generally a valid consideration.

False

An acceptance is still valid if it is received after a rejection is received.

False

The term "consideration" in relation to contracts involves parties acting in an ethical manner.

False

Threatening physical harm or extortion to gain consent to a contract is classified as undue influence.

False

When there is a substitution of a party to a contract, it is called rescission.

False

A bond used as bail in a criminal case is which type of contract?

Formal contract

If the terms of acceptance of a contract do not reflect the terms of the offer, which of the following prevents a contract from being formed?

Mirror-image rule

Privity of contract is usually required in order for a party to be bound to a contract or have rights under a contract.

True

Promissory estoppel is an exception to the rule requiring consideration.

True

Reasonable reliance on a promise is one of the requirements of promissory estoppel.

True

The Restatement (Second) of the Law of Contracts is not actually the law itself.

True

The number of circumstances under which silence can be an acceptance are limited.

True

There are two primary kinds of performance.

True

Samantha is looking to make a formal contract with her neighbor for her babysitting services. Samantha could create a contract in each of the following manners except

a simple contract.

Each of the following is true of a mutual mistake of fact except

one form of a mutual mistake occurs when one party makes a mistake about a material fact, and the other party knows about the mistake.

A(n) ___________ contract is a contract in which one or both parties has the ability to either withdraw from or enforce the contract.

voidable

If the offeror becomes incapacitated, the offer terminates after notice of the offeree's death or after 10 days, whichever comes first.

False

In a bilateral contract, consideration for a promise is a completed act.

False

In an unliquidated debt, the parties agree on whether money is owed and agree upon the amount but disagree on the repayment schedule.

False

It is always easy to know when acceptance has occurred.

False

Suppose Joey and Mikey enter into a contract together. Joey says he will pay Mikey $100,000 to kill one of Joey's enemies. Both parties know this contract involves the undertaking of an illegal act. Under which element of a contract is this contract not enforceable?

Legal object

Natalie promises Brett that she will pay him $1,000 for painting her house. Brett then agrees and purchases the painting materials, costing him $300. The following day Brett arrives at Natalie's house to paint but she had hired Kobe instead. Is Brett entitled to damages?

Yes, Brett relied on Natalie's promise and bought all the paints with his own money.

__________ is present when the party making the fraudulent assertion believed it was false or had no regard for whether it was true or false.

Scienter

Bobby tells Alyssa (Shelley's agent) to tell Shelley he will sell his used Jeep to Shelley for $5,500 cash. Shelley's brothers, Kyle and Chris, overhear the offer. Who can accept Bobby's offer?

Shelley and Alyssa (on behalf of Shelley).

The court may award the plaintiff nominal damages in a case where no actual damages result from the breach of a contract.

True

The court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring when one party thought there was an enforceable contract, but an enforceable contract does not actually exist.

True

Under the Mailbox Rule, a valid contract is formed if a rejection is dispatched, but before the rejection is received, the acceptance is communicated to the offeror.

True

Undue influence refers to those special relationships in which one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person and interfere with that person's ability to make his or her own decision.

True

When the party making the statement would have known the truth about the fact had he used reasonable care to discover or reveal it, a negligent misrepresentation results.

True

A(n) ____________ occurs when a party unjustifiably fails to substantially perform his or their obligations under the contract.

material breach

The mirror-image rule says that the terms of the acceptance must mirror _________.

the terms of the offer

A(n) ___________ is the result of an error by one party about a material fact. If both parties to a contract are mistaken about a material fact, either can opt to rescind it. This is known as a(n) ___________.

unilateral mistake; mutual mistake

After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be ________.

voidable

Under the common law, which of the following qualifies an acceptance as a valid acceptance?

A valid acceptance requires all three of these elements: Manifestation of intent to be bound by the acceptance, Communication to the offeror, and Agreement to the definite and certain terms of the offer.

The following contracts would be deemed illegal by a state or federal statute EXCEPT:

Agreements where an intoxicated person is so impaired that he is unable to understand his legal obligations under the contract he is entering into.

When a contract is overturned because it is deemed to have illegal subject matter or is illegal to perform, it is generally considered voidable.

False

A third party who is intended to directly benefit from a contract made by two contracting parties is called an intended beneficiary.

True

Minors can disaffirm contracts for necessaries, but they will still be held liable for the reasonable value of the necessary.

True

A(n) _____________ is a third party who benefits from a contract in which a promisor agrees to give a gift to the third party.

donee beneficiary

If the offer is for a unilateral contract, the offeree can accept only by __________________.

providing the requested performance

Which one of the contractual agreements would not fall under an exception to the parol evidence rule?

A written agreement that contains no obvious typographical errors.

Which of the following is not a way to discharge a contract by mutual agreement?

Anticipatory repudiation

Contracts do not have to fall under the common law or the Uniform Commercial Code.

False

For fraudulent misrepresentation to be the basis for a contract rescission, the statement of fact must be an actual assertion.

False

For purposes of determining capacity, intoxicated persons include those under the influence of alcohol, but not drugs.

False

Fraudulent misrepresentation and intentional misrepresentation are not the same thing.

False

If both parties are mistaken about a material fact, the mutual mistake does not void the contract.

False

If the means by which an acceptance can be communicated to the offeror is expressly stated in the offer, it is called an "implied authorization."

False

Intent to deceive may not be inferred when a fraudulent misrepresentation is at issue.

False

It is not necessary to show reliance to prove fraudulent misrepresentation.

False

The offer and acceptance together constitute the ___________, which is the first element of a contract.

agreement

Each of the following is an example of a discharge by mutual agreement except

alteration of the contract.

A(n) ______________ arises when the party's duty to perform arises after a particular event occurs; if the event never occurs, the party's duty to perform never arises and the parties are thus discharged from the contract.

condition precedent

A(n) __________ releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered.

exculpatory clause

The terms of __________ contracts are all clearly set forth in either written or spoken words

express

For a promise to be enforced by the courts, there must be ___________.

consideration

Assignment of a contract that is personal in nature is generally permitted.

False

A court may prevent the offeror from revoking his offer under when which of the following occurs?

Detrimental reliance

_________ is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.

Incapacity

Suppose you are a donee beneficiary. If you have problems with the contract, whom can you sue?

Only the person who was supposed to perform for you

Which of the following statements is false concerning liquidated damages?

The courts specify the amount of liquidated damages a plaintiff receives

Equitable remedies are ______________.

court-ordered actions

An offeror has no right to revoke an offer before receiving a reply.

False

All exculpatory clauses are unlawful.

False

If a contract is valid, then it is enforceable.

False

An erroneous belief about the facts of the contract at the time the contract is concluded is called a mistake of fact.

True

Suppose a construction company enters into a contract to build a warehouse for the hypothetical Vincent Corporation with a contract price of $700,000, and the cost of raw materials and labor is $400,000. How much could the construction company recover in lost profits if the Vincent Corporation were to breach the contract before performance had begun?

$300,000 (Contract price-raw materials)

Suppose KJI Inc. had contracted to buy 20 shirts from XYZ Shirt Retailers at $15 each and will sell the shirts at $25 each. XYZ fails to deliver the shirts and now ABC has to buy the same shirts for $17 each. If KJI brings a case against XYZ, the probable measure of recovery will be _______.

$40 (17x20-15x20)

Which one of the following is considered to be a legally binding offer?

Auctions without reserve

Which of the following elements is not necessarily required for a legally binding contract?

Money is exchanged

Which of the following is not a possible defense to a contract?

The offeree lost his job and can't pay anymore.

Parties can discharge their duty under a contract by tendering performance.

True

For a court to enforce a promise, who must offer consideration?

Both sides.

Partial payment of a debt is never valid consideration.

False

Which of the following examples has never been a way of identifying a contract under seal?

If both parties sign the contract, it is presumed to be under seal

Who can accept an offer? I. Offeree. II. Offeree's agent. III. Anyone the offeree told about the offer.

I and II.

Which of the following is an exception to the preexisting duty rule?

Unforeseen circumstances

An order requiring that the breaching party fulfill the terms of the agreement is called specific performance.

True

An unliquidated debt may be the subject of an accord and satisfaction.

True

Courts interpret contracts using an objective standard.

True

Creditor beneficiaries can enforce their rights under a contract whenever the contract is valid.

True

Death or incapacity of an offeror immediately terminates the offer.

True

If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant.

True

Oral modifications are inadmissible and unenforceable if a contract's terms require that modification be in writing.

True

All parties to a contract must sign the writing in order for the statute of frauds to be satisfied.

False

Suppose that the Miami Heat basketball franchise enters into a contract with a sports apparel producer and screen printer. The team agrees to purchase 100,000 T-shirts for $5 each and 25,000 hats for $6 each, indicating that the Miami Heat are the NBA champions. However, the terms of the contract indicate that the contract will occur only if the Miami Heat win the championship that year. The above scenario is an example of what?

Condition precedent.

Eugene agrees to finish painting Hazel's house within two weeks of the time they agree to in the contract. A week in, Eugene realizes he cannot finish without additional help. He tells Hazel he will need an extra $700 to do this. Hazel agrees. With the additional help, Eugene finishes painting the house within the agreed two weeks. Does Hazel have to pay the extra $700?

No, under the preexisting duty rule, Hazel does not have to pay.

Suppose an operator of a weight scale certifies the weight of a good that is for sale. However, the accuracy of the scale used to weigh the good has not been checked in more than four years, even though the weight scale operator could have easily checked the accuracy of the scale. The scale gave an improper weight measurement that resulted in many problems with the shipping and sale of the product. The above scenario is an example of what?

Negligent misrepresentation

__________ are created by the courts to prevent one party from being unjustly enriched at the expense of another.

Quasi-contracts

Which of the following rights can be assigned?

Real property rights.

This type of contract is not a contract because either its object is illegal or it has a serious defect.

Void contract

Which of the following statements is false?

With intended beneficiaries, contracting parties did not intend to benefit the third party with their contract.

Which of the following is not an element of fraudulent misrepresentation?

All of these are elements required to prove fraudulent misrepresentation: Justifiable reliance on the false, statement by the innocent party, a false statement about a material fact of the contract, and Intent to deceive.

Which of the following is not considered a material term?

All of these examples are considered material terms: Quantity, Price, Subject matter, and Parties

Which of the following types of contracts is required to be recorded in a written contract or memorandum?

Contracts for the sale of goods totaling more than $500.

________________ restrict what an employee may do after leaving a company, and they often dictate where, when, and with whom an employee may work.

Covenants not to compete

Charles enters into a written agreement with Classy Bakery to provide the cake for his daughter's wedding. Charles pays $500 in advance for the cake. Classy Bakery has an emergency and can't deliver the cake, so they pay $100 to Jed's Baked Goods to take over the delivery instead. This is an illustration of what legal concept?

Delegation.

On the streets of New York, a man sells you a pocket watch for $20. He says all the watch needs is a new battery and it will be just like new and work perfectly. You buy a new battery for the watch, but the watch still does not work. The man selling the watch knew that the watch would not work, even with a new battery, but he told you it would anyway. The above scenario is an example of what?

Fraudulent misrepresentation

Which of the following is not a means of discharging a contract by operation of law?

Mutual rescission

Do mutual promises to marry require a writing?

No, because mutual promises to marry do not fall within the statute of frauds.

On rare occasions, rescission is permitted for unilateral mistakes. Which of the following scenarios is an example of when rescission might be available for a unilateral mistake?

One party made a mistake about a material fact, and the other party had reason to know about the mistake

Whenever a written agreement under the statute of frauds contains a serious, and obvious, typographical error, parol evidence is admissible to demonstrate that the error was indeed an error, as well as to set forth the proper term.

True

Usury occurs when:

a party gives a loan at an interest rate above the legal maximum.

A party transferring their duties under a contract to another individual is the

delegator.

When both parties are mistaken about a current or past material fact, ____________________.

either can choose to rescind the contract

Covenants not to compete in conjunction with the sale of a business are generally __________ if they are for a reasonable length of time and involve a reasonable location.

enforceable

Another name for ______________ is intentional misrepresentation.

fraudulent misrepresentation

A promise to do something that you are already obligated to do is ________________.

not valid consideration

Which of the following is an element of an offer under common law?

the intent to be bound by an acceptance

Each of the following is true of the law of contracts except:

the law of contracts serves as statutory law.

In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is _________.

valid

Suppose that Jeremy agrees to pay Shelly $50 a month for 4 months to tutor him for his legal studies class. However, Jeremy breaches the contract and terminates Shelly for no reason other than the fact he wanted a more attractive tutor. Shelley had two months left on the contract and could not find another tutoring job for those two months. How much in compensatory damages would Shelley be entitled to?

$100

Suppose Victor promises to stop smoking cigarettes during the winter. What type of promise has Victor made?

A promise to refrain from doing something.

Technically, minors can disaffirm contracts for necessaries, but they will still be held liable for the reasonable value of the necessary. Which of the following is generally an example of a necessary?

All of these: Medical services, Shelter, Clothing, and Food

In which scenario is parol evidence permitted in court?

All of these: When contracts have been subsequently modified, When contracts are conditioned on orally agreed-on terms, When contracts are incomplete, and When there are voidable or void contracts.

Which of the following terms is not a condition required in promissory estoppel? I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise.

All the terms are required.

Which of the following are foreseeable damages resulting from circumstances arising outside the contract itself?

Consequential damages

Which of the following types of contracts does not fall within the statute of frauds?

Contracts for the sale of goods totaling less than $400

Suppose a 17-year-old, Kendall, enters into an agreement to purchase a Harley Davidson from an ad she saw in the paper. She will pay $1,000/month until the bike is paid off. After making the third payment, Kendall turns 18 and decides to move out of state. She e-mails the seller of the motorcycle and tells him not to worry because even though she is moving, she still intends to make her monthly payments to purchase the bike. The above scenario is an example of what legal concept?

Express ratification

A donee beneficiary is a third party that benefits from a contract in which the promisor agrees to pay the promisee's debt in return for compensation plus interest.

False

A donee beneficiary is a type of incidental beneficiary.

False

An invitation to negotiate is an offer because it expresses a willingness to be bound by acceptance.

False

Completion of all of the terms of a contract is required for substantial performance.

False

Consideration is optional in every contract.

False

Contractual conditions may be expressly inserted into the contract by the parties but may not be implied by law.

False

In the absence of a time condition in either offer, an offer by a retailer to purchase seasonal goods from a wholesaler would lapse later than an offer to purchase goods that could easily be sold all year long.

False

Past consideration generally qualifies as consideration.

False

Quasi-contracts are actual contracts.

False

The purpose of the parol evidence rule is to prevent attempts to use only oral evidence to prove agreements.

False

There are two types of conditions that can be placed on contracts and affect a party's duty to perform the promise agreed to in the contract.

False

When an assignor transfers her rights to an assignee, the assignor still retains the right to collect on the contract.

False

When determining whether consideration is sufficient to support a contract for the sale of goods under the UCC, one relevant factor is whether both parties received a good deal under UCC rules and principles.

False

If a minor enters into contract with an adult, both parties may disaffirm a contract based upon the minor's lack of majority.

False.

If a seller actively hides an important fact about the product he or she is selling, then the contract for the sale could be rescinded on which of the following grounds?

Fraudulent misrepresentation

Which one of the following is a contract that arises from the conduct of the parties rather than their words?

Implied

Valerie is an incidental beneficiary to a contract. One of the parties to the contract breaches the contract. Valerie wishes to sue. Whom can she sue to enforce the contract?

Neither of the two parties

Suppose Bekah agrees to do bodywork on Fatima's car. In exchange, Fatima agrees to be a poker dealer at Bekah's underground casino. In the state where Bekah and Fatima live, there is a gaming statute that says all games of chance other than slot machines and the state lottery are illegal. Would the agreement between Bekah and Fatima be enforceable?

No, because part of this agreement violates a law and therefore, the agreement calls for crime.

Todd leaves his babysitter, Zach, a voice mail message saying, "I need someone to watch little Joey and Hilary on Friday night. If you can babysit on such late notice, I'll pay you an extra $40 on top of your usual rate. If I don't hear from you by 5 p.m. tomorrow, I'll assume we have a deal." If Zach does not call back, has a contract been created?

No, because silence under these circumstances will not constitute acceptance.

Donna is an accountant and decides to do her friend Mike a favor by filing his taxes for free. Mike is very thankful and tells Donna "I will pay you $500 for being so kind and generous!" Mike fails to keep his promise and does not pay Donna the $500. Donna then brings an action to have the promise enforced. Will the court hold that a contract exists?

No, past consideration is no consideration at all.

A store places an advertisement in the newspaper for "Sale on Dell laptops - All Dell laptops for sale for $500 the last week in July!" Is the store making an offer?

No, the store is merely inviting potential customers to come to the store and offer $500 for a computer.

Suppose you hired the band Journey to perform at your event. Could Journey arbitrarily transfer their performing duties to Britney Spears to perform instead?

No, this duty is personal in nature and the performances would vary significantly.

Frank works as a cellphone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise?

No, this is an example of past consideration

Under what circumstance could lack of genuine assent apply to a contract?

The offeror engages in fraud and misrepresentation with respect to the contract

Which of the following statements is false regarding compensatory damages?

They are foreseeable damages that result from special circumstances arising outside the contract itself.

Suppose Don enters into an agreement for a one-year gym membership, conditioned on his not moving out of the state for a new job. If he finds a new job out of the state, his obligation to be bound by the gym contract is discharged. Why?

This contract contains a condition subsequent.

Suppose Frank owns a vintage Porsche in mint condition. He agrees to sell it to Smith, but the night before the parties are to exchange money for the title, a hurricane rips through Frank's town and collapses the roof of the garage into the Porsche. The car is no longer in mint condition or even sellable. The parties are thus discharged from their obligations under the contract. Why?

This is a situation arising from objective impossibility.

A bond used as bail in a criminal case is a recognizance, which is an example of a formal contract.

True

A contract for the sale of a good falls under Article 2 of the UCC.

True

An oral contract for customized goods that would normally have to be in writing is enforceable.

True

Compensatory damages are frequently awarded damages.

True

If an offer authorizes certain means of acceptance, use of an unauthorized means of acceptance is acceptable but the contract is not formed until the acceptance is received by the offeror.

True

Only the offeree to whom an offer is directed can accept the offer.

True

Reasonably definite terms are one of the elements of an offer.

True

Restitution is the return of any property given up under the contract.

True

Scienter is present when the party accused of making the fraudulent assertion believed that the assertion was false or made the claim without any regard for whether it was true or false.

True

Someone who has been adjudicated insane has no capacity to enter into contracts, and any contract he attempts to enter into is void, even if he has an appointed guardian.

True

Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for three hours, I will pay the worker $75." You show up and help with the pool cleaning. What type of contract did you and your boss create?

Unilateral contract.

Suppose Jared purchases a life insurance policy. Life insurance policies do not vest until the promisee's death. Jared originally made his wife Carla the intended beneficiary, but now that they are divorced, he wishes to make his daughter Haley the beneficiary instead. Can Jared change the beneficiary?

Yes, because Carla's rights were not vested yet.

Suppose you entered into a contract to clean someone's pool. Then, both you and the pool owner discovered that the pool water has produced toxic levels of chlorine over time. As a result, you cannot clean the pool without first decontaminating it. This change in knowledge about the toxicity levels of the pool is considered a material fact in the agreement. Can you rescind the contract?

Yes, this seems like a mutual mistake.

Suppose Xavier receives an offer to play on a minor-league hockey team a few states away from where he currently lives. He moves out of his apartment, turns down offers from other teams, and moves all his possessions to a new apartment close to the hockey arena. After moving there, Xavier is then told there is no position for him anymore! May he sue the hockey team?

Yes, this situation looks like promissory estoppel.

Suppose Susie enters into a contract that she would give Mikhail her trailer on four acres of wooded backcountry if he agrees to supply her with $25,000 of illegal cocaine and heroin. If Mikhail wanted to prove with oral evidence that the contract was void or voidable, could he?

Yes, void or voidable contracts are an exception to the parol evidence rule.

Bruce agrees to lease Tim's commercial property until Bruce is offered a job from his dream company, Google. The condition to which Bruce and Tim are agreeing to is called:

a condition subsequent.

Once all the terms of the contract have been fully performed, the contract has been _________. As long as some of the terms have not yet been performed, the contract is ________.

executed; executory

The mail-box rule is not applicable when there is ______________.

instantaneous communication

A person has _________ to enter into a contract if she suffers from a mental illness or deficiency that prevents her from understanding the nature and obligations of the transaction.

limited capacity

A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries.

True