Ch13-TB2-WBL-10e

Ch13-TB2-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. A minor may accept and validate a contract with an adult. ANSWER: T PAGE: 258 TYPE: N 2. When a minor disaffirms a contract, he or she can keep whatever property  is in his or her possession as a result of the contract. ANSWER: F PAGE: 258 TYPE: N 3. An adult may disaffirm a contract entered into with a minor. ANSWER: F PAGE: 258 TYPE: N 4. If   a   minor   disaffirms   a   contract,   he   or   she   must   disaffirm   the   entire  contract. ANSWER: T PAGE: 259 TYPE: N 5. Clothing is   not   something that the courts have been willing to define as  “necessary.” 125
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126 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS ANSWER: F PAGE: 259 TYPE: N
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CHAPTER 13: CAPACITY AND LEGALITY 127 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: 259 TYPE: = 7. A minor may disaffirm a contract for necessaries and thereby avoid liability  for the reasonable value of the goods. ANSWER: F PAGE: 259 TYPE: N 8. Failure to disaffirm an executory contract within a reasonable time after  reaching the age of majority implies ratification. ANSWER: F PAGE: 262 TYPE: = 9. Parents who sign a contract made by their minor child with an adult have  the same option to disaffirm as the child. ANSWER: F PAGE: 262 TYPE: = 10. A person who enters into a contract when he or she is intoxicated can void  the contract if he or she did not comprehend the legal consequences. ANSWER: T PAGE: 263 TYPE: + 11. A legal guardian cannot enter into legally binding contracts on behalf of a  mentally incompetent person. ANSWER: F PAGE: 264 TYPE: + 12. A blue law is a state statute that prohibits loans at an interest above the  “blue line.” ANSWER: F PAGE: 265 TYPE: N 13. The maximum rate of interest is the same in every state. ANSWER: F PAGE: 265 TYPE: N 14. A contract with an unlicensed professional is always enforceable. ANSWER: F PAGE: 266 TYPE: N
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128 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS 15. A covenant not to compete is never enforceable. ANSWER: F PAGE: 266 TYPE: + 16. A covenant not to compete is enforceable only if it is reasonable in duration  and geographic area. 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-TB2-WBL-10e - Chapter13 CapacityandLegality...

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