Question 1

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive, and she now wishes to cancel the order. Cheryl:

Accepted Answer

Cheryl, as a minor, has the right to disaffirm contracts that are not for necessities. While clothing is generally considered a necessity, a prom dress is likely not classified as such, allowing her to cancel the order.

Question 2

Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, Robert:

Accepted Answer

Under the prevailing view, a minor can disaffirm a contract and get their money back, even if they lied about their age.

Question 3

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. This contract is:

Accepted Answer

The answer of Anna is 88 years old and under...

Question 4

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week. In this case:

Accepted Answer

Donald has expressly ratified the contract by indicating his intention to follow through with it after reaching the age of majority.

Question 5

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, Steve:

Accepted Answer

In most jurisdictions, a minor can disaffirm a contract and return the vehicle to get their money back, as contracts with minors are generally voidable.

Question 6

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership. Randy sells this truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Randy may:

Accepted Answer

The answer of Randy, a minor, buys a new four-wheel...

Question 7

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Accepted Answer

A minor cannot disaffirm only part of a contract; they must disaffirm the entire contract if they choose to disaffirm.

Question 8

Which of the following is untrue regarding the contracts of intoxicated persons?

Accepted Answer

Slight intoxication does not destroy one's contractual capacity; the person must be significantly intoxicated to the point of not understanding the nature and consequences of the contract for it to be voidable.

Question 9

Under the Uniform Commercial Code, when the minor has sold goods and the buyer has resold them to a good faith purchaser for value:

Accepted Answer

Under the UCC, a good faith purchaser for value acquires legal title, even if the seller (in this case, the minor) had a voidable title. This protects the good faith purchaser in the chain of commerce.

Question 10

Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may:

Accepted Answer

The answer of Joanne, a minor, sold her laptop computer...

Question 11

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?

Accepted Answer

In most jurisdictions, only the minor has the right to disaffirm a contract, not the adult party.

Question 12

Melody, age 17, makes a contract with Seung, who is an adult. Melody:

Accepted Answer

Minors generally have the right to disaffirm contracts to protect them from their lack of experience and judgment. Melody, being a minor, can disaffirm the contract while still a minor.

Question 13

Fourteen-year-old Marsha bought $120 worth of video games at a local store, using her own money. Her parents insisted that she return the items and get her money back. Which of the following is true?

Accepted Answer

In most jurisdictions, minors have the right to disaffirm contracts, meaning they can void the contract and get their money back, even if they cannot return the merchandise.

Question 14

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, is twice the reasonable value of that mobile home. Several months later, Percy wants to disaffirm the contract. If the mobile home is considered a necessary item:

Accepted Answer

Minors are generally allowed to disaffirm contracts, but if the item is considered a necessary, they are only liable for the reasonable value of the item, not the contract price.

Question 15

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Accepted Answer

The answer of Which of the following is least likely...

Question 16

Which of the following is untrue regarding the contracts of incompetent persons?

Accepted Answer

An incompetent person can ratify a contract if they regain competence, unlike a minor who cannot ratify a contract made during minority.

Question 17

Ratification can occur in which of the following ways?

Accepted Answer

Ratification can occur through express language, implied conduct, or by failing to disaffirm in a timely manner, making all options correct.

Question 18

The exercise of the power to avoid a contract is known as:

Accepted Answer

The exercise of the power to avoid a contract by a minor is known as disaffirmance.

Question 19

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold the skis to Sharon and disaffirmed the contract. Fay is:

Accepted Answer

Selling the skis to Sharon is considered a ratification of the contract, which means Fay accepted the terms of the contract by her actions after reaching the age of majority.

Question 20

At age 17, Wanda purchased an expensive sound system from Lectronic City. If Wanda wishes to ratify this contract, Wanda:

Accepted Answer

Wanda must reach the age of majority to ratify the contract, and she must ratify the contract as a whole, not just parts of it.

Quiz 14: Contractual Capacity