Question 1

Usury laws set a lower limit on the interest rate that can be charged on certain types of loans.

Accepted Answer

Usury laws set an upper limit on the interest rate that can be charged on certain types of loans.

Question 2

Under the infancy doctrine,the contract is voidable by a minor.

Accepted Answer

The infancy doctrine is a legal principle that protects minors (individuals under the age of 18 in most jurisdictions) from being bound by contracts they enter into. Under this doctrine, a minor has the right to void (cancel or undo) a contract at any time before they reach the age of majority or within a reasonable time after they become legally competent. Therefore, the statement "Under the infancy doctrine, the contract is voidable by a minor" is true.

Question 3

A person who has dealt with an insane person need not place that insane person in status quo if the contract is either void or voided by the insane person.

Accepted Answer

The answer of A person who has dealt with an...

Question 4

The standard definition of what is a necessary of life does not include medical care.

Accepted Answer

The standard definition of what is a necessary of life typically includes medical care as a basic need.

Question 5

Disaffirmance may be conveyed orally or by the minor's conduct.

Accepted Answer

Disaffirmance can be conveyed orally, meaning the minor can express their intention to disaffirm the contract through spoken words. It can also be conveyed by the minor's conduct, such as returning the goods purchased or refusing to make further payments.

Question 6

The duty of restoration is a rule that states that if a minor has transferred money,property,or other valuables to the competent party before disaffirming the contract,that party must place the minor in status quo.

Accepted Answer

The answer of The duty of restoration is a rule...

Question 7

Minors must pay the reasonable value of necessaries of life for which they contract.

Accepted Answer

This statement is true. Minors can be held responsible for paying for necessities of life such as food, clothing, and shelter, even if they are not yet legally adults.

Question 8

The act or process of a minor voluntarily leaving home and living apart from his or her parents is referred to as ratification.

Accepted Answer

The act or process of a minor voluntarily leaving home and living apart from his or her parents is referred to as emancipation. Ratification refers to the process of approving or validating something, such as a contract or agreement.

Question 9

Judges are free to define morality based on their individual views.

Accepted Answer

Judges are bound by the law and legal precedent, rather than their personal views on morality. They must interpret and apply the law impartially, based on its stated principles and values. While judges may bring their own experiences and ethical perspectives to their decision-making, ultimately, they are expected to adhere to legal standards and precedent.

Question 10

Any age below the statutory age of majority is called the period of minority.

Accepted Answer

This statement is true. The period of minority refers to the time when a person is below the age of majority and is not yet considered a legal adult. The age of majority varies by country or state, but is typically 18 years old.

Question 11

Usury laws are intended to protect unsophisticated borrowers from loan sharks and others who charge exorbitant rates of interest.

Accepted Answer

Usury laws set a legal limit on the interest rates that lenders can charge and are intended to protect borrowers, particularly those with limited financial knowledge, from predatory lending practices that result in high interest rates and fees.

Question 12

A contract with an illegal object is not voidable.

Accepted Answer

A contract with an illegal object is void ab initio, which means it is completely null and void from the beginning, and there is no way to make it legally enforceable.

Question 13

The duty of restitution is a rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

Accepted Answer

The answer of The duty of restitution is a rule...

Question 14

After becoming sober,an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Accepted Answer

Once a person becomes sober, they can choose to ratify (confirm) contracts they entered into while intoxicated, making those contracts fully valid and enforceable.

Question 15

A doctrine that allows minors to disaffirm (cancel)most contracts they have entered into with adults is referred to as covenant not to compete.

Accepted Answer

The doctrine that allows minors to disaffirm most contracts they have entered into with adults is called the Infancy Doctrine or Minor's Disaffirmance Doctrine. Covenant not to compete is a contract provision that restricts one party from competing with another party after the termination of their business relationship.

Question 16

Any contract entered into by a person who has been adjudged insane is void.

Accepted Answer

A person who has been adjudged insane is considered to lack the legal capacity to enter into a contract and any contract entered into by such a person would be considered void.

Question 17

Weakness of intellect constitutes legal insanity.

Accepted Answer

Weakness of intellect is not necessarily synonymous with legal insanity. Legal insanity requires more than just a mental deficiency; it generally requires a lack of understanding or control over one's actions, or a lack of ability to distinguish right from wrong.

Question 18

Senility cannot lead to mental incapacity.

Accepted Answer

Senility is a term that used to be used to describe cognitive decline associated with aging, but it is now considered an outdated term. However, the idea that aging processes can lead to cognitive decline and mental incapacity is supported by research. Conditions such as dementia and Alzheimer's disease can lead to severe mental incapacity and are more likely to occur in older adults.

Question 19

A situation in which both parties are equally at fault in an illegal contract is termed "emancipation."

Accepted Answer

Emancipation refers to the legal process of a minor becoming free from the control of their parents or legal guardians. It is not related to illegal contracts in which both parties are at fault. In such a situation, it would be termed as "mutual fault."

Question 20

If a minor does not disaffirm a contract either during the period of minority or within a reasonable time after reaching the age of majority,the contract is considered ratified.

Accepted Answer

If a minor does not disaffirm a contract during the period of minority or within a reasonable time after reaching the age of majority, it is considered that he or she has ratified the contract.

Quiz 11: Capacity and Legality