Ch13-TB1-WBL-10e

Ch13-TB1-WBL-10e - Chapter13 CapacityandLegality

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Chapter 13 Capacity and Legality N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. When both parties to a contract are minors, neither of them may disaffirm  the contract. ANSWER: F PAGE: 258 TYPE: = 2. A minor’s right to disaffirm a contract terminates automatically when the  person reaches the age of majority. ANSWER: F PAGE: 258 TYPE: + 3. Some states provide for the termination of minority status on marriage. ANSWER: T PAGE: 258 TYPE: N 4. The age of majority in most states is eighteen years. ANSWER: T PAGE: 258 TYPE: N 5. Disaffirmance is the legal avoidance of a contractual obligation. 123
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124 TEST BANK 1—UNIT THREE: CONTRACTS AND E-CONTRACTS ANSWER: T PAGE: 258 TYPE: N 6. Food   is   the   only   thing   that   courts   have   been   willing   to   define   as  “necessary.” ANSWER: F PAGE: 259 TYPE: +
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CHAPTER 13: CAPACITY AND LEGALITY 125 7. Parents are required by law to provide necessaries for their minor children. ANSWER: T PAGE: 259 TYPE: = 8. Parents are ordinarily liable for the contracts made by their minor children,  whether or not the children acted on their own. ANSWER: F PAGE: 262 TYPE: + 9. 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: 263 TYPE: = 10. A person who enters into a contract when he or she is intoxicated can void  the contract if the terms are obviously favorable to the other party. ANSWER: F PAGE: 263 TYPE: = 11. A contract is unenforceable if there is a statute that prohibits the action  promised by the contract. ANSWER: T PAGE: 264 TYPE: + 12. An executed contract entered into on Sunday in a state having a Sunday  law cannot be rescinded. ANSWER: T PAGE: 265 TYPE: = 13. A lender who makes a loan at a rate above the lawful maximum commits  usury. ANSWER: T PAGE: 265 TYPE: N 14. If the purpose of a licensing statute is to raise government revenues, a  contract with an unlicensed professional will normally be enforceable. ANSWER: T PAGE: 266 TYPE: = 15. A  covenant   not   to   compete   between   ongoing   businesses   is   always  enforceable.
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126 TEST BANK 1—UNIT THREE: CONTRACTS AND E-CONTRACTS ANSWER: F PAGE: 266 TYPE: +
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CHAPTER 13: CAPACITY AND LEGALITY 127 16. A  covenant not to compete that is part of an employment contract will  generally be struck down. ANSWER:
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This note was uploaded on 10/15/2010 for the course ACCT ACCT40 taught by Professor Birnbaum during the Fall '08 term at CUNY Brooklyn.

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Ch13-TB1-WBL-10e - Chapter13 CapacityandLegality

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