Ch08-TB-BLTE-8e

Ch08-TB-BLTE-8e - Chapter8 Contracts:Capacity,...

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Chapter 8 Contracts: Capacity, Legality, Assent, and Form TRUE/FALSE QUESTIONS 1. Some states provide for the termination of minority status on marriage. ANSWER: T PAGE: 237 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 2. A minor can disaffirm a contract only after reaching the age of majority. ANSWER: F PAGE: 237 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 3. A minor may accept and validate a contract with an adult. ANSWER: T PAGE: 237 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 4. If   a   minor   disaffirms   a   contract,   he   or   she   must   disaffirm   the   entire  contract. ANSWER: T PAGE: 237 TYPE: = 111
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112 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS MISC: AACSB Analytic Skill Level: AICPA Legal 5. Disaffirmance is the legal avoidance of a contractual obligation. ANSWER: T PAGE: 237 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 6. A minor who affirmatively misrepresents himself or herself to be an adult  will  not  be able to disaffirm a contract in most states. ANSWER: F PAGE: 238 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal
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CHAPTER 8: CONTRACTS: CAPACITY, LEGALITY, ASSENT, AND FORM 113 7. Food   is   the   only   thing   that   courts   have   been   willing   to   define   as  “necessary.” ANSWER: F PAGE: 238 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Legal 8. A person who enters into a contract when he or she is intoxicated can void  the contract only if the intoxication was involuntary. ANSWER: F PAGE: 239 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 9. A guardian cannot enter into a legally binding contract on behalf of a men- tally incompetent person. ANSWER: F PAGE: 240 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 10. A lender who makes a loan at a rate below the lawful maximum commits  usury. ANSWER: F PAGE: 241 TYPE: + MISC: AACSB Reflective Skill Level: AICPA Legal 11. A contract with an unlicensed professional is never enforceable. ANSWER: F PAGE: 243 TYPE: + MISC: AACSB Reflective Skill Level: AICPA Legal 12. A covenant not to compete is never enforceable. ANSWER: F PAGE: 244 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 13. An exculpatory clause may be viewed as unconscionable.
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TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS ANSWER: T PAGE: 247 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 14. An exculpatory clause in a residential property lease is always enforceable. ANSWER: F PAGE: 247 TYPE: + MISC: AACSB Analytic Skill Level: AICPA Legal 15. An exculpatory clause on a ticket to a ride in an amusement park is never  enforceable. ANSWER:
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Ch08-TB-BLTE-8e - Chapter8 Contracts:Capacity,...

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