Exam 2 Part-2

Question 1

Emancipation-Regarding minors- is when a parent relinquishes what four rights to their child?

Answer 1

Control
Custody
Care
Earnings

Question 2

Un-Emancipated minors can _____ but _________ contracts

Answer 2

Valid, Avoidable

Question 3

Can an un-emancipated minor disaffirm a contract after they turn 18?

Answer 3

Yes, as long as it is within a reasonable amount of time

Question 4

Define disaffirm:

Answer 4

When a minor leaves a contract

Question 5

Define ratification:

Answer 5

The act of accepting and giving legal force to a formerly unenforceable obligation. (minor can ratify after 18)

Question 6

Name two ways to ratify a contract:

Answer 6

Expressed (Acceptance by words)

Implied (Acceptance by action)

Question 7

Does being drunk/intoxicated automatically show incapacity?

Answer 7

No. It does not.

Question 8

If you were deemed Incompetent then made a deal then contract will be ____

Answer 8

Void

Question 9

If you made a deal then deemed incompetent then the contract can be _____ or _________.

Answer 9

Valid or avoidable (depending)

Question 10

Covenant not to compete have to be reasonable in terms of ____ and ________.

Answer 10

Time and Geography (can’t say you can never compete against me, anywhere on the planet)

Question 11

Define Unconscionability:

Answer 11

Is when a contract term shocks the conscious of the court

Question 12

When evaluating unconscionability courts consider the:

Answer 12

Relative Bargaining Power: Apple’s agreements are crazy but you have no other choice- Unconscionable. Dry-cleaners agreements are crazy- you have other choices

Question 13

Define Exculpatory Clause:

Answer 13

When one party releases another from liability not matter what.

Question 14

Exculpatory Clause is _________ __________.

Answer 14

Generally Unenforceable

Question 15

If you have a contract for illegal action the contract is ____.

Answer 15

Void - Breach in Legality