BUSAD 120 - Business Law » Fall 2021 » Chapter 14 Quiz

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Question #1
Les, a minor, enters into a contract to buy a dirt bike from Motocross LLC. Les can ordinarily disaffirm the contract
A.   at any time during minority.
B.   in a timely manner.
C.   all of the choices.
D.   for a reasonable time after coming of age.
Question #2
The contracts entered into by a minor are voidable at the option of that minor.
A.   FALSE
B.   TRUE
Question #3
If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.
A.   FALSE
B.   TRUE
Question #4
Dari, a minor, wants to disaffirm a contract that she entered into with Echo, a cell service company. The law in Dari’s state, as in all states, permits minors to disaffirm
A.   fully executed contracts only.
B.   executory contracts only.
C.   none of the choices.
D.   executory and fully executed contracts.
Question #5
A court usually will enforce a covenant not to compete provided its restrictions are reasonable.
A.   TRUE
B.   FALSE
Question #6
A minor can enter into any contract an adult can, without exception.
A.   FALSE
B.   TRUE
Question #7
Von, a minor, wants to return a set of skis that he bought from Winter Sports. He used—and wrecked—the skis. In a state in which a duty of restitution is imposed, Von most likely
A.   must return the skis and pay for the damage.
B.   is not required to return the skis due to his or her minority.
C.   cannot return the skis unless they can be fully restored.
D.   can return the skis “as is” and avoid further liability.
Question #8
Foy, a minor, misrepresents his age when entering into a contract to buy a car from Gas Hogs Inc. Foy takes possession of the car, but makes no payments on the contract and tries to disaffirm it. Most likely, Gas Hogs can recover
A.   the balance due on the contract.
B.   an amount equal to the wholesale value of the car.
C.   nothing.
D.   the car, but not any of the balance due on the contract.
Question #9
A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.
A.   FALSE
B.   TRUE
Question #10
A party may have the capacity to enter into a valid contract and the right to avoid liability under it.
A.   FALSE
B.   TRUE
Question #11
A promise to refrain from competing in business with another is considered to be unconscionable.
A.   FALSE
B.   TRUE
Question #12
Among the requirements for a valid contract, courts generally presume the existence of
A.   minority.
B.   contractual capacity.
C.   mental incompetence.
D.   none of the choices.
Question #13
Generally neither party to an illegal contract can sue for breach.
A.   FALSE
B.   TRUE
Question #14
Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely
A.   valid because it is part of a sale of an ongoing business.
B.   invalid because it is part of a sale of an ongoing business.
C.   invalid because of the unreasonable terms of area and time.
D.   valid if both parties are justifiably ignorant of the facts.
Question #15
  
A.   FALSE
B.   TRUE
Question #16
The lack of a license in certain occupations bars the enforcement of work-related contracts.
A.   TRUE
B.   FALSE
Question #17
Seth is mentally incompetent but has not been adjudged by a court to be incompetent. Seth enters into a contract with Toby for the cleaning and maintenance of Seth’s warehouse. Most likely, the contract is
A.   void.
B.   enforceable if Toby did not know that Seth was mentally incompetent.
C.   enforceable if the warehouse needs cleaning and maintenance.
D.   voidable if Seth did not comprehend the consequences.
Question #18
  
A.   twenty-one.
B.   sixteen.
C.   seventeen.
D.   eighteen.
Question #19
Bern, a minor, signs a contract to buy a Caterwauler jet boat from Dahl, an adult. Dahl
A.   cannot avoid the contract.
B.   can avoid as much of the contract as Bern elects to avoid.
C.   must obtain Bern’s consent to avoid the contract.
D.   can avoid the contract without Bern’s consent.
Question #20
A contract entered into by an intoxicated person can be voidable.
A.   TRUE
B.   FALSE
Question #21
Evelyn is a minor. As a minor, she
A.   has the capacity to enter into a valid contract.
B.   has the right to avoid liability under a valid contract.
C.   is not usually legally bound by a contract.
D.   all of the choices.
Question #22
A minor can ratify a contract and thus make it enforceable.
A.   TRUE
B.   FALSE
Question #23
Accepting and giving legal force to an obligation that previously was not enforceable is
A.   disaffirmance.
B.   ratification.
C.   emancipation.
D.   illegal.
Question #24
A minor can disaffirm a contract at any time but remains legally obligated to perform it.
A.   FALSE
B.   TRUE
Question #25
An unconscionable contract is one in which the terms of the agreement are oppressive, unscrupulous, or grossly unfair.
A.   FALSE
B.   TRUE

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