Chapter 13 Flashcards

1
Q

Which of the following is true regarding the test of contractual incapacity?

Multiple Choice

The test usually applied in contract law is whether a party, at the time the case is litigated, had sufficient mental capacity to understand the nature and effect of the contract.

A person could be medically insane but still have the legal capacity to contract.

A person who is senile cannot enter into a binding agreement.

A person with less-than-ordinary intelligence cannot enter into a binding agreement.

A

A person could be medically insane but still have the legal capacity to contract.

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2
Q

A person lacking mental capacity when a contract was entered into may ratify a contract if the person regains their capacity.
true or false

A

true

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3
Q

Which of the following is true regarding minors and necessaries?

Multiple Choice

Items sold to a minor are considered necessaries of life even if the minor’s parent or guardian has supplied or is willing to supply similar items.

A car is not considered a necessary for a minor.

Whether a given item is considered a necessary depends on the facts of the particular case.

As a general rule, the definition of necessary is narrowing to exclude things commonly considered important by today’s standards.

A

Whether a given item is considered a necessary depends on the facts of the particular case.

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4
Q

In many states, intoxicated persons are treated like people who lack mental capacity:

Multiple Choice

Only if they were so intoxicated that they were unable to understand the nature of the business at hand when they entered into the agreement.

Whenever they cannot pass a field sobriety test.

When were so drunk as to be considered less-than-ordinary-intelligence.

Only when they have an official diagnosis of “alcoholic.”

A

Only if they were so intoxicated that they were unable to understand the nature of the business at hand when they entered into the agreement.

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5
Q

Jack, a minor, purchased a video game at the Game Place, which has a sign posted above the cash register stating “NO RETURNS OR EXCHANGES.” After opening the game and trying it out, Jack decided he wanted to return the game. Which of the following is a true statement?

Multiple Choice

Jack may return the game and receive a full refund.

Because he opened the game, Jack cannot return the game to the store.

Because video games are now considered a necessary, Jack cannot return the game to the store.

Because the sign clearly stated no returns, Jack cannot return the game to the store.

A

Jack may return the game and receive a full refund.

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6
Q

The ability of a person to do a legally valid act is referred to as:

Multiple Choice

Assent

Ratification

Capacity

Consideration

A

Capacity

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7
Q

Minors must pay the reasonable value of:

Multiple Choice

Shelter, music lessons, cell phones, and driving classes.

Shelter and music lessons, but not cell phones or driving classes.

Shelter but not music lessons, cell phones, or driving classes.

Shelter, music lessons, and driving lessons, but not cell phones.

A

Shelter but not music lessons, cell phones, or driving classes.

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8
Q

Contracts made by minors are voidable.
true or false

A

true

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9
Q

Andrea Sanchez has fallen hopelessly in love with Enrique Salazar. Both are seventeen years old. The two are married in Paducah, Kentucky, their hometown. All four of their parents attend the wedding and are very supportive of their children’s decision to wed. Upon marriage, both Andrea and Enrique are said to be __________ from their respective parents.

Multiple Choice

renounced

emancipated

immune

excommunicated

A

emancipated

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10
Q

In a contract involving a minor, whether an item can be considered a necessary:

Multiple Choice

does not depend on the minor’s age.

does not depend on the facts of the particular case.

depends on whether the adult who contracted with the minor chooses to disaffirm the contract.

depends on the minor’s station in life.

A

depends on the minor’s station in life.

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11
Q

A person of less-than-ordinary intelligence does not have the legal capacity to contract.
true or false

A

false

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12
Q

A contract will be void under the law in most states where a party was adjudicated mentally incompetent before they entered into the contract.
true or false

A

true

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13
Q

The termination of a parent’s right to receive services and wages from a child and to generally control him or her is referred to as:

Multiple Choice

Ratification

Emancipation

Disaffirmance

Adoption

A

Emancipation

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14
Q

Minors are generally held liable on a(n) __________ contract basis for the __________ value of necessaries furnished to them.

Multiple Choice

implied; fair market

express; contract

quasi; reasonable

executory; resale

A

quasi; reasonable

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15
Q

Which of the following was the result in Wethington v. Swainson, the case in the text involving a minor injured during skydiving lessons and the attempted disaffirmance of a release of liability in favor of the provider signed by the minor and the minor’s parents?

Multiple Choice

That the minor could disaffirm only if she could prove that the defendant failed to sufficiently set forth the prospective dangers and that, otherwise, the minor’s signature and that of the parents was effective.

That because the parents also signed the release regarding prospective dangers, it could not be disaffirmed by the minor.

That because a known and ultrahazardous activity was involved, the release could not be disaffirmed.

That parents of a minor may not release a minor’s prospective claims for negligence, and that the minor could disaffirm.

A

That parents of a minor may not release a minor’s prospective claims for negligence, and that the minor could disaffirm.

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16
Q

Which of the following was the result in Lopez v. Kmart, the case in the text involving whether the plaintiff, an employee who while a minor signed an arbitration clause in connection with employment, could disaffirm the clause once attaining the age of 18?

Multiple Choice

The court ruled that the plaintiff could not disaffirm the contract because, through working, he was considered emancipated.

The court ruled that the plaintiff could not disaffirm the contract because he waited until he was 18 to try to do so.

The court ruled that the plaintiff could disaffirm the contract because he did so within a reasonable time after turning 18.

The court ruled that the plaintiff could disaffirm the contract only if he notified the company in writing using language set forth by statute.

A

The court ruled that the plaintiff could disaffirm the contract because he did so within a reasonable time after turning 18.

17
Q

People lacking mental capacity are liable for the reasonable value of necessaries on the same basis and for the same reasons as minors.
true or false

A

true

18
Q

A minor does not always have to petition the court to receive emancipation.
true or false

A

true

19
Q

Ann has been treated off and on for mental illness. In regard to Ann, she is presumed to have no capacity to contract.
true or false

A

false

20
Q

If the minor, after attaining majority, sells or gives away consideration he or she received as a part of a contract, this is probably enough for ratification.
true or false

A

true