Question 1

Cray returns a digital music player that he bought from Discount City,which refunds the price.Their exchange involves

Accepted Answer

The return of the digital music player and the refund of the price paid is an example of restitution, which means restoring something to its original state or position. Emancipation refers to the legal process of releasing a person from parental control, ratification refers to the confirmation or approval of a previously agreed-upon action or contract, and severability is the ability for different parts of a contract to be enforced separately. None of these terms are applicable to the situation described in the question.

Question 2

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price.This contract is

Accepted Answer

Intoxication does not necessarily render a contract unenforceable. As long as Uri was aware of the consequences and fully understood the terms of the contract when he agreed to it, the contract is legally binding. The fact that the price is higher than average and may favor Wander Talk does not automatically make the contract unenforceable.

Question 3

Intoxicated,Clio agrees to sell her restaurant,Diners Café,to Evan for half of its real market value.This deal is most likely void if

Accepted Answer

If Evan fraudulently induced Clio to become intoxicated, then the agreement is voidable. This means that Clio can choose to either enforce or void the contract, depending on her decision. However, if Clio voluntarily became intoxicated on her own accord, then the agreement is still enforceable, as being intoxicated does not necessarily make a contract void or voidable.

Question 4

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of

Accepted Answer

Some states allow minors to marry and have provisions for terminating their minority status through legal means. However, the laws vary between states and may require parental consent, court approval, or other conditions to be met before their minority status can be terminated.

Question 5

Orin enters into a contract with Natalie.Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian.Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the ground of Orin's incompetency.The contract is

Accepted Answer

The answer of Orin enters into a contract with Natalie.Later,Orin...

Question 6

Mica,a minor,signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is

Accepted Answer

After reaching the age of majority, Mica has the option to ratify or affirm the contract, meaning to agree to its terms and continue to use the club. This is different from a disaffirmance, which would be Mica voiding the contract, and emancipation, which is a legal process where a minor is granted the rights and responsibilities of an adult. Restitution refers to the return of something that was lost or stolen, which is not applicable in this situation.

Question 7

Boyd is a minor.As a minor,Boyd has the capacity to enter into

Accepted Answer

Minors have the capacity to enter into a contract, but they can choose to void the contract if they wish. However, if the contract is beneficial to the minor, they cannot void it. Therefore, Boyd has the capacity to enter into a valid contract, but has the option to void the contract if he so chooses.

Question 8

Elmo,a minor,misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos.Ordinarily,Elmo can disaffirm the contract

Accepted Answer

Minors have the right to disaffirm contracts they entered into, regardless of whether or not the other party knew their true age, as they are considered to lack the legal capacity to enter into such agreements. Therefore, Elmo can disaffirm the contract with Fine New Autos under any circumstances.

Question 9

Ken relinquishes the right to his son Lee's control,care,custody,and earnings.This act is

Accepted Answer

Ken relinquishing the right to his son's control, care, custody, and earnings is an act of emancipation, which means freeing a child from parental control and authority.

Question 10

Windshield Repair Shop (WRS)promises to pay Vincent $1,000 a week to work for WRS.Vincent accepts and quits his job with Ultra Glass.WRS fails to provide a job for Vincent.Vincent has a cause of action based on

Accepted Answer

Vincent has a cause of action based on promissory estoppel. WRS made a promise of employment to Vincent, and he relied on that promise and quit his job with Ultra Glass. WRS failed to follow through on their promise, and Vincent suffered harm as a result. Therefore, Vincent may have a claim for promissory estoppel.

Question 11

Fact Pattern 11-3 (Questions 10-11 apply)
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 11-3.In Carmen's suit against Dex to recover her repair and medical expenses,Carmen will most likely recover

Accepted Answer

Carmen agreed to a settlement with Dex by accepting $2,000 in exchange for not pursuing further legal claims. This agreement is likely binding, preventing her from recovering additional amounts.

Question 12

Fact Pattern 11-2 
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 11-2.If,as Brad claims,the consideration in this problem is inadequate,it may indicate a lack of

Accepted Answer

Inadequate consideration would indicate a lack of a bargained-for exchange or mutual assent, as both parties must agree to the terms and exchange something of value in order for a contract to be valid. It does not necessarily relate to accord, flexibility, or the weight of the terms in the contract.

Question 13

Todos Ltd.agrees to supply United Steel,Inc.,with minerals from Venezuela.When the government is unexpectedly overthrown in a revolution,Todos can obtain the goods only at a much higher price.United agrees to pay but later files a suit to recover the difference.The court will most likely rule that

Accepted Answer

The answer of Todos Ltd.agrees to supply United Steel,Inc.,with minerals...

Question 14

Fact Pattern 11-3 (Questions 10-11 apply)
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.
-Refer to Fact Pattern 11-3.The agreement between Dex and Carmen is

Accepted Answer

The agreement between Dex and Carmen is a release, as Dex offered Carmen a sum of money in exchange for her promise not to pursue her legal claim against him. By accepting the money, Carmen released Dex from any further liability.

Question 15

Cielo is fifteen.In most states,Cielo would be considered a minor because she is under the age of

Accepted Answer

The answer of Cielo is fifteen.In most states,Cielo would be...

Question 16

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is

Accepted Answer

When a court adjudicates someone as mentally incompetent and appoints a guardian for them, they essentially lose the authority to make legally binding decisions. Therefore, any contract signed by Huck without Inez's knowledge would be considered void, regardless of whether or not he comprehended the consequences or knew the market value of the farm.

Question 17

On Tom's eighteenth birthday,he decides that he no longer wants to keep a car he bought from U-Pick Autos,when he was seventeen.His right to disaffirm the deal will depend on

Accepted Answer

Tom's right to disaffirm the deal depends on whether he acts within a reasonable period of time. Generally, minors have the right to disaffirm contracts until a reasonable time after reaching the age of majority. The condition of the car at the time of purchase or its current condition is not relevant to Tom's right to disaffirm. U-Pick's right to disaffirm is also not relevant in this situation.

Question 18

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is

Accepted Answer

The answer of Fay is mentally incompetent but has not...

Question 19

Baked Goods Company agrees to supply Comida Café with all the corn chips that it requires for a year.A sudden demand for ethanol results in a shortage of corn,and the price rises sharply.Baked Goods asks Comida to pay a higher price for the chips.This request is

Accepted Answer

The answer of Baked Goods Company agrees to supply Comida...

Question 20

Webline Retail Sales,Inc.,promises its salaried employees a bonus at the end of the year if management thinks it is warranted.This promise is

Accepted Answer

The promise of a bonus at the end of the year is not supported by consideration, as the employees are already receiving their salary as compensation for their work. Without consideration, the promise is unenforceable.

Quiz 11: Consideration, capacity, and Legality