Question 1

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 legal view, minors have the right to disaffirm contracts to protect them from their own lack of judgment and experience. This right typically allows them to get their money back, even if they misrepresented their age.

Question 2

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 Uniform Commercial Code, when a minor sells goods and the buyer resells them to a good faith purchaser for value, the good faith purchaser acquires legal title to the goods. This is because the minor only has the power to void the contract, not transfer ownership of the goods. Therefore, the good faith purchaser for value receives a good title, while the minor is unable to disaffirm and recover the property.

Question 3

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

Accepted Answer

The answer of In which of the following situations would...

Question 4

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

Accepted Answer

Slight intoxication may affect judgment and decision-making, but it generally does not destroy one's contractual capacity. Choices A, B, and D are true statements regarding contracts of intoxicated persons.

Question 5

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 may disaffirm the contract as a new prom formal is not classified as a necessary item. She would not be responsible for paying for the dress, as it was not a necessary expense.

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

Randy, being a minor, does not have the legal capacity to enter into a contract for purchasing the truck from the dealership or selling it to Steve. Therefore, the sale to Steve is voidable at Randy's option. However, once Steve conveys the vehicle to Arthur, who is a bona fide purchaser for value and without notice of any defect in title, Randy can no longer recover the vehicle from Arthur. The sale to Arthur is valid regardless of the fact that the immediate seller (Steve) had no title to the vehicle. Randy may only have a cause of action against Steve for any damages resulting from the sale of the truck.

Question 7

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

Accepted Answer

Contracts involving minors are generally voidable at the option of the minor, not the adult. Therefore, Violet, being the adult, cannot disaffirm the contract; only Tim, the minor, has the legal right to do so.

Question 8

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

Accepted Answer

Contracts entered into by minors are generally voidable at the minor's discretion. However, once a minor reaches the age of majority, they can choose to ratify (formally approve) the contract, but it must be done as a whole, not in parts. Ratification can only occur after reaching the age of majority.

Question 9

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

Accepted Answer

An incompetent person may be able to ratify a contract if they regain competence at a later time. However, if the contract is not for necessaries, they may still be able to avoid it.

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

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

Accepted Answer

Disaffirmance is the ability to avoid a contract, usually by a party who lacks capacity to enter a contract or by a minor who enters into a contract. This essentially nullifies the contract, making it as if it never existed. Ratification is the opposite of disaffirmance, where a person confirms or approves a contract that was originally voidable. Ab initio refers to something that is invalid from the beginning, and restitution refers to the return of something that was lost or taken.

Question 12

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

The answer of Steve purchases a four-wheel drive truck from...

Question 13

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

Since the mobile home is considered a necessary item, Percy can disaffirm the contract, but he will still be liable for the reasonable value of the mobile home. He cannot return the mobile home and get all his money back, but he will only have to pay what the mobile home is actually worth.

Question 14

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

The answer of Fourteen-year-old Marsha bought $120 worth of video...

Question 15

Ratification can occur in which of the following ways?

Accepted Answer

Ratification can occur through express language, implied conduct, or failure to make a timely disaffirmance. Therefore, all the options are correct.

Question 16

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 17

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's actions suggest that he has expressly ratified the contract by agreeing to pick up the motorcycle and indicating intention to complete the transaction. Ratification is the act of accepting and giving legal force to a contract that was otherwise voidable, such as a contract made by a minor. Once Donald turned 18, he had the ability to ratify or reject the contract, and his actions indicate that he chose to ratify it.

Question 18

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

Accepted Answer

As a minor, Melody has the power of avoidance, which allows her to disaffirm the contract and be released from any liability. This means that she can choose to abide by the contract or not once she reaches the age of majority.

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

The answer of Fay, age 17, ordered a pair of...

Question 20

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...

Quiz 14: Contractual Capacity