Question 1

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Accepted Answer

A) True 
 B)False

Question 2

[Irresponsible Teen] Rose is 17 in a state where majority age is 18.She purchased a prom dress from Your Special Day.She wore it to the prom and then attempted to return it to the store,claiming that she was a minor and that she was entitled to a refund.The dress had clearly been worn and had a purple stain which Rose claimed was from grape juice.Additionally,a few days before she turned 18,Rose purchased a used car from Sal's Car Savings.She had a deal whereby she paid $100 per month on the car.She drove the car and made payments for six months after she turned 18.Rose then returned the car to Sal's Car Savings,informed the owner that she was under 18 when she entered into the contract to purchase the car,and told the owner that she was returning the car for a full refund.Sal's Car Savings claimed the car was a necessity.Rose and her parents disagreed claiming that the parents were ready and willing to provide a car to Rose,and that she only purchased the car from Sal's Car Savings because she liked that particular style and color.When purchases of the dress and car were made,the sellers knew that Rose was under the age of 18.
-Which statement about Rose's attempt to return the damaged dress is true?

Accepted Answer

A)  In all states Rose must return the dress;but she has a right to a full refund.
B)  In all states Rose has the right to keep the dress and get a refund.
C)  Regardless of what she does with the dress,Rose has no right to a refund in any state.
D)  In some states Rose would have an obligation of restitution to the store.
E)  In all states Rose would have an obligation of restitution to the store.F) C) and D)
G) None of the above

Question 3

Set forth in detail the test that most states follow regarding the treatment of the capacity of intoxicated persons to enter into contracts.

Accepted Answer

Most states follow the Restatement of Co...

Question 4

The type of agreement Ines asked the customer with green hair to sign is called ________.

Accepted Answer

A)  malfeasance
B)  procedural
C)  substantive
D)  adhesion
E)  exculpatoryF) C) and D)
G) B) and C)

Question 5

A person who has legal ________ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and,therefore,will presumably be able to understand how to comply with the terms of the agreement.

Accepted Answer

A)  Capacity
B)  Understanding
C)  Consideration
D)  History
E)  RatificationF) B) and E)
G) B) and D)

Question 6

Because ________ does not favor intoxication,the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification as ratifying the contract.

Accepted Answer

A)  Public policy
B)  Medical literature
C)  Popular opinion
D)  Morality
E)  ReligionF) A) and E)
G) B) and E)

Question 7

If a legal contract is formed and the subject of the contract then becomes illegal under a new statute,the contract is ________.

Accepted Answer

A)  Executory
B)  Executed
C)  Disregarded
D)  Discharged
E)  EnforcedF) B) and E)
G) A) and B)

Question 8

Assuming covenants not to compete in employment contracts are legal in their state,would Lisette likely be able to enforce the contract against Calvin?

Accepted Answer

A)  Yes,because Calvin is working for a competitor,his employment contract specifically states that it remains in effect if the business is sold to a new owner,and the covenant not to compete is reasonable.
B)  Yes,because the covenant not to compete protects a legitimate business interest.
C)  Yes,because Calvin is working for a competitor.
D)  No,because the covenant not to compete does not contain a period of time and geographic area that are reasonable.
E)  Yes,because Calvin is working for a competitor and his employment contract specifically states that it remains in effect if the business is sold to a new owner.F) B) and E)
G) C) and E)

Question 9

Roland wants to avoid paying for the training program and claims the contract is indivisible and thus unenforceable.Is he correct?

Accepted Answer

A)  Yes,if Roland could show that the main purpose of the contract was for Parna to work as a poker dealer,then declaring parts of the contract as void would substantially alter the contract.
B)  No,because courts are likely to enforce a contract regardless of whether severing the contract would substantially alter it.
C)  No,because almost every contract is divisible.
D)  No,because even if the legal parts were separated from the contract,the main purpose of the contract employing Parna as a poker dealer) can be met after she turns 21.
E)  Yes,because Parna would be unjustifiably enriched if Roland paid for the program.F) A) and D)
G) A) and C)

Question 10

[Pedicurist license] Briana applied for a job at Nedra's salon as a pedicurist and signed an employment contract with Nedra.The contract contained a provision that stated,"Employee cannot be terminated for poor performance without prior notice and thirty days to improve performance." After Briana worked for Nedra for two months,Nedra noticed Briana did not follow standard public health procedures for pedicures.Nedra called the state licensing agency and found out that Briana's pedicurist license had expired ten years ago.Nedra's state requires that,in order to protect public health,all pedicurists must be licensed by the state in order to perform pedicures at salons within the state.Briana claimed that,according to the explicit terms of the contract,Nedra could not terminate her for poor performance without first giving her notice and thirty days to improve her performance.
-Is the employment contract's provision,that Briana cannot be terminated without notice and thirty days to improve,likely enforceable?

Accepted Answer

A)  No,because the purpose of the statute was to control the number of pedicurists in the state.
B)  Yes,because it was ratified by two months of performance.
C)  No,because the licensing statute in that state is intended to protect public health,and the agreement would most likely be deemed illegal and unenforceable.
D)  Yes,because licensing statutes are meant to provide revenue to the state and the proper remedy for an unlicensed professional is a fine.
E)  Yes,because the contract can be severed and it is not relevant that the law requires a license to protect the public.F) A) and C)
G) A) and B)

Question 11

Disaffirmance laws have been found to reflect a policy of discouraging adults from contracting with minors.

Accepted Answer

A) True 
 B)False

Question 12

As a general rule,parents are not liable for contracts entered into by their minor children.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

Accepted Answer

A)  Independent contracts
B)  Adhesion contracts
C)  Justifiable contracts
D)  Substantive contracts
E)  Severable contractsF) None of the above
G) A) and D)

Question 14

A[n] contract is a contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis.

Accepted Answer

A)  Outrageous
B)  Adhesion
C)  Unreasonable
D)  Substantively unconscionable
E)  Procedurally unreasonableF) A) and E)
G) None of the above

Question 15

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor,typically when the minor moves out of the parents' house and begins supporting himself or herself?

Accepted Answer

A)  Ratification
B)  Reaffirmance
C)  Legal release
D)  Disaffirmance
E)  EmancipationF) D) and E)
G) A) and D)

Question 16

Rabbi Dave,who strictly follows Sabbath law,purchased a golf club online on Friday morning.His account was set to the default status,under which payment is made at the time of shipping.Unbeknownst to Dave,shipment is made on Saturday,in violation of Sabbath law.On Monday morning,Dave notices an email that payment was made on Saturday.Dave calls the company,claiming that the agreement is illegal and should be rescinded.Is he correct?

Accepted Answer

A)  No,all states have Sabbath laws that make it illegal to enter into a contract on a Sabbath day,however,fully performed contracts created on a Sabbath day cannot be rescinded.
B)  Yes,though not all states have Sabbath laws that make it illegal to enter into a contract on a Sabbath day,any contract created on a Sabbath day can be rescinded.
C)  No,some Sabbath laws make it illegal to enter into a contract on a Sabbath day,however,fully performed contracts created on a Sabbath day cannot be rescinded.
D)  Yes,all states have Sabbath laws that make it illegal to enter into a contract on a Sabbath day.
E)  No,but only because the contract was not fully executed.F) A) and B)
G) A) and C)

Question 17

The harsh and lopsided terms of Antoine's contract could be claimed as which of the following?

Accepted Answer

A)  Unclear drafting
B)  Procedural unconscionability
C)  Adhesion conscionability
D)  Outrageous wording
E)  Substantive unconscionabilityF) A) and D)
G) All of the above

Question 18

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Accepted Answer

A)  Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they inform the other party that they are in treatment.
B)  Persons suffering from a mental illness may have full,limited,or no legal capacity to enter into a binding contract depending on the nature and extent of their mental deficiency.
C)  Persons who suffer from a mental illness always have full capacity to enter into a binding contract.
D)  Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they do not present a danger to themselves or others.
E)  Persons suffering from a mental illness have no capacity to enter into a binding contract.F) A) and E)
G) A) and B)

Question 19

In regard to the rule used in determining the obligations of a minor on disaffirmance of a contract,discuss both the traditional rule and also the modification of the rule applied in a number of states today,set forth which of the rules you support,and why.

Accepted Answer

Traditionally,most states simply require...

Question 20

If a contract is disaffirmed due of intoxication,which of the following statements is true?

Accepted Answer

A)  Any party other than the intoxicated person must be returned to the condition he or she was in at the time the contract was entered into.
B)  So long as the contract was objectively fair,neither party must be returned to the condition he or she was in prior to the time the contract was entered into.
C)  Each party to the contract must return the other to the condition he or she was in at the time the contract was entered into.
D)  The intoxicated person must be returned to the condition he or she was in at the time the contract was entered into,but that is not true for any other party.
E)  So long as the contract was subjectively fair in the opinion of the intoxicated party,neither party must be returned to the condition he or she was in prior to the time the contract was entered into.F) A) and E)
G) C) and D)

Exam 16: Capacity and Legality

A[n] contract is a contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis.

Correct Answer
verified

Roland wants to avoid paying for the training program and claims the contract is indivisible and thus unenforceable.Is he correct?

Correct Answer
verified

Set forth in detail the test that most states follow regarding the treatment of the capacity of intoxicated persons to enter into contracts.

Correct Answer
verified
Most states follow the Restatement of Co...
View Answer

If a contract is disaffirmed due of intoxication,which of the following statements is true?

Correct Answer
verified

A person who has legal ________ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and,therefore,will presumably be able to understand how to comply with the terms of the agreement.

Correct Answer
verified

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Correct Answer
verified

Assuming covenants not to compete in employment contracts are legal in their state,would Lisette likely be able to enforce the contract against Calvin?

Correct Answer
verified

Correct Answer
verified

Because ________ does not favor intoxication,the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification as ratifying the contract.

Correct Answer
verified

The harsh and lopsided terms of Antoine's contract could be claimed as which of the following?

Correct Answer
verified

Disaffirmance laws have been found to reflect a policy of discouraging adults from contracting with minors.

Correct Answer
verified

The type of agreement Ines asked the customer with green hair to sign is called ________.

Correct Answer
verified

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor,typically when the minor moves out of the parents' house and begins supporting himself or herself?

Correct Answer
verified

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

Correct Answer
verified

Correct Answer
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Correct Answer
verified

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Correct Answer
verified

If a legal contract is formed and the subject of the contract then becomes illegal under a new statute,the contract is ________.

Correct Answer
verified

As a general rule,parents are not liable for contracts entered into by their minor children.

Correct Answer
verified

In regard to the rule used in determining the obligations of a minor on disaffirmance of a contract,discuss both the traditional rule and also the modification of the rule applied in a number of states today,set forth which of the rules you support,and why.

Correct Answer
verified
Traditionally,most states simply require...
View Answer

Exam 16: Capacity and Legality

A[n] contract is a contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis.

Correct AnswerverifiedShow Answer

Roland wants to avoid paying for the training program and claims the contract is indivisible and thus unenforceable.Is he correct?

Correct AnswerverifiedShow Answer

Set forth in detail the test that most states follow regarding the treatment of the capacity of intoxicated persons to enter into contracts.

Correct AnswerverifiedMost states follow the Restatement of Co...View AnswerShow Answer

If a contract is disaffirmed due of intoxication,which of the following statements is true?

Correct AnswerverifiedShow Answer

A person who has legal ________ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and,therefore,will presumably be able to understand how to comply with the terms of the agreement.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Correct AnswerverifiedShow Answer

Assuming covenants not to compete in employment contracts are legal in their state,would Lisette likely be able to enforce the contract against Calvin?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Because ________ does not favor intoxication,the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification as ratifying the contract.

Correct AnswerverifiedShow Answer

The harsh and lopsided terms of Antoine's contract could be claimed as which of the following?

Correct AnswerverifiedShow Answer

Disaffirmance laws have been found to reflect a policy of discouraging adults from contracting with minors.

Correct AnswerverifiedShow Answer

The type of agreement Ines asked the customer with green hair to sign is called ________.

Correct AnswerverifiedShow Answer

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor,typically when the minor moves out of the parents' house and begins supporting himself or herself?

Correct AnswerverifiedShow Answer

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Correct AnswerverifiedShow Answer

If a legal contract is formed and the subject of the contract then becomes illegal under a new statute,the contract is ________.

Correct AnswerverifiedShow Answer

As a general rule,parents are not liable for contracts entered into by their minor children.

Correct AnswerverifiedShow Answer

In regard to the rule used in determining the obligations of a minor on disaffirmance of a contract,discuss both the traditional rule and also the modification of the rule applied in a number of states today,set forth which of the rules you support,and why.

Correct AnswerverifiedTraditionally,most states simply require...View AnswerShow Answer

Correct Answer
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Correct Answer
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Most states follow the Restatement of Co...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Traditionally,most states simply require...
View Answer