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46. Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?
a. Violet may not disaffirm the contract.
b. Violet may disaffirm the contract at any time.
c. Violet may disaffirm the contract when Tim becomes an adult.
d. Tim may ratify the contract at any time during his minority.
47. Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle when he negligently backs into a
pole. Under the majority view, can Rosa recover damages from Todd?
a. Yes, Todd breached his duty to exercise reasonable care and diligence to protect the automobile.
b. Yes, although Todd is a minor, it is well settled that minors are generally liable for their torts.
c. No, minors generally cannot be held liable for their torts.
d. No, his contractual immunity protects him from legal action by Rosa.
48. 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:
a. would be out of luck.
b. must have the truck repaired.
c. will receive his money less the depreciation in value of the vehicle.
d. may simply return the vehicle and get his money.
49. 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:
a. recover the vehicle from Mr. Smith.
b. not recover the vehicle from Mr. Smith.
c. hold Steve liable in tort.
d. recover the reasonable value of the vehicle from Mr. Smith but not the vehicle itself.
50. Robert is 17 years old. He lies to Bouyers Auto in order to induce it to sell him a new pickup. Bouyers falls for this
lie and sells him the pickup. In most jurisdictions, Robert:
a. may disaffirm and get his money back.
b. may not disaffirm since he lied.
c. must restore Bouyers to its position before contracting with him.
d. will receive his money less depreciation.
51. Which of the following is not true regarding the contracts of incompetent persons?
a. An incompetent person is liable for necessaries.
b. Unlike a minor, an incompetent person can never ratify a contract.
c. To avoid a contract, a person need not be permanently incompetent.
d. A person is competent unless he is unable to understand the nature and effect of his act.
52. Which of the following is not true regarding the contracts of intoxicated persons?
a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is
voidable.
b. The effect of intoxication is generally the same as that given to contracts that are voidable because of
incompetency.
c. Slight intoxication will destroy one's contractual capacity.
d. Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the
intoxicated person regains his capacity.
53. The exercise of the power to avoid a contract is known as:
a. ratification.
b. disaffirmance.
c. ab initio.
d. restitution.
54. Sixteen-year-old Laura’s disaffirmance of a contract:
a. for a sale of land by her is not effective until after she reaches the age of majority.
b. is only effective if expressed in words in the particular form required by statute.
c. can only be effective if she is an “emancipated” minor.
d. must take place after she reaches the age of majority, regardless of the type of contract, since only then does
she have capacity.
55. Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a
contract?
a. A camera
b. School supplies
c. Boots for a snowy climate
d. An automobile
56. In which of the following situations would a minor be unable to disaffirm a contract which he had made?
a. Upon restoring the consideration received in a situation involving a fully executed contract
b. Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract
c. During the time of his minority or for a reasonable time thereafter
d. None of these.
57. Which of the following would be a valid ratification? Two weeks after his eighteenth birthday, Jerry:
a. sells the motorcycle he contracted to buy when he was seventeen.
b. calls the bank to assure them that he will continue making payments on the loan agreement he signed a month
before his eighteenth birthday.
c. makes a payment on the installment contract he signed a month before.
d. All of these.
58. Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was
twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the
mobile home is considered a necessary, then:
a. Percy can disaffirm the contract based on the wrongful act of the dealer.
b. Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home.
c. Percy may keep the mobile home but is only liable for the reasonable value of the mobile home.
d. Percy must keep the mobile home and abide by the original terms of the contract.
59. 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. If she now wishes to cancel the
order, Cheryl:
a. must pay $500 for the dress because the dress was specially ordered for Cheryl.
b. must pay $500 for the dress because clothing is classified as a necessity.
c. may disaffirm this executory contract.
d. must accept the dress and pay the reasonable value of the dress.
60. Wanda at age 17 purchased an expensive stereo system from Stereo Sales. If Wanda wishes to ratify this contract,
Wanda:
a. must reach the age of majority and ratify the contract as a whole.
b. may do so by express notification at any time before reaching the age of majority.
c. may at any time keep the stereo but avoid any remaining debt owed on the stereo.
d. may do so at any time by express or implied action before or after reaching the age of majority.
61. Donald, a minor, makes a contract with Albert, an adult, to buy a computer. One week later, Donald has his
eighteenth birthday. If shortly thereafter Donald tells Albert he will pick up the computer the next week:
a. Donald has expressly ratified the contract.
b. the contract must be renegotiated, because Donald was a minor when it was made.
c. Donald can change his mind and avoid the contract, because it was made when he was a minor.
d. the contract is void ab initio, because Donald was a minor at the time it was made.
62. A contract by which of the following is void?
a. A fourteen-year-old girl.
b. A thirty-six-year-old man under a court-ordered guardianship for mental incompetency.
c. A thirty-year-old woman who, because of intoxication, is unable to understand the nature and consequences
of signing the contract.
d. A twenty-five-year-old woman who is unable to understand the nature and effect of signing a contract
because of a mental illness.
63. When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation,
the other party in good faith enters into a contract with the minor:
a. the minor has lost his right to disaffirm the contract because of the misrepresentation.
b. the adult party can recover damages from the minor in tort.
c. the minor is required to restore the other party to the position occupied before the making of the contract.
d. There is no uniform rule. States differ, and depending upon the state, any of these could be correct.
64. Gerard, an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large
quantity of services that he will probably never need. Although Gerard understands what he is doing when he enters
the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way. Under the
Restatement:
a. Gerard’s contract is voidable at his option while it is entirely executory.
b. Gerard cannot avoid the contract if Communiserve had no reason to suspect Gerard’s incompetency.
c. Gerard cannot avoid the contract if the terms are fair.
d. Gerard can only avoid the contract if the terms are grossly unfair.
65. In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is
determined by:
a. state statute.
b. the UCC.
c. the facts and circumstances of the case.
d. common law, without regard to the unique facts of the case at hand.
66. Harold, a minor, decided to trade his 1985 truck on a new, late-model car at the local dealership. One week after
driving the new car, Harold decides that he cannot afford the payments. Harold now wishes to disaffirm his
purchase and get his old truck back. The dealer informs Harold that the truck has been sold. Can Harold get the old
truck back and disaffirm his contract with the dealer? Explain.
67. Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn
money for college. She has an important interview with a modeling agency and wants to make a good impression, so
she withdraws $5,000 from her savings and buys a designer outfit and a fur coat for the interview. A week later, she
returns the coat to the department store and says she would like her money back. The store is reluctant to take the
items. What are Cheryl's rights? Explain your answer, citing relevant law.
68. Sixteen-year-old Trevor has run out of money while on a trip away from home. Mr. & Mrs. Height provide Trevor
with food, a place to sleep, and bus fare home in exchange for Trevor’s promise to send them $200 when he gets
home. Is Trevor’s promise enforceable?
69. Compare the contractual liability of an intoxicated person to that of a person who is mentally ill. How are their
situations similar? How are they different with regard to capacity?
70. What are the ways in which a minor may ratify a contract? What are the ways in which a minor may disaffirm a
contract? What is the effect of a minor misrepresenting age in order to enter into a contract?
71. What is the doctrine of liability for a tort connected with a contract?
72. Name and briefly describe the three classes of persons who are legally limited in their capacity to contract.
