ch14 - Ch.14 Quiz Instructions Please read the questions...

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Ch.14 Quiz Instructions Please read the questions carefully. This assessment is worth 100 points. 1. In most states today, the age of contractual capacity remains 21. (5 points) True False 2. In most states, in order for a minor to have the capacity to contract, he must be emancipated. (5 points) True False 3. A minor's contract for necessaries makes the minor liable for the reasonable value of the necessaries furnished to him. (5 points) True False 4. A person who at the time of the contract lacked capacity due to mental impairment can ratify the contract once he regains his normal mental faculties. (5 points) True False 5. Under the Restatement (Second) of Contracts, intoxication will make a contract voidable only if the other party had reason to know that the intoxicated person lacks the mental ability to contract. (5 points) True False 6. Normally, a minor's power to disaffirm a contract ends once he reaches the age of majority. (5 points) True False 7. The traditional rule is that, where the consideration given a minor under a minor's contract has been lost, stolen, or dissipated, the minor can disaffirm without compensating the adult for the loss in any way. (5 points) True False 8. In virtually all the states today, a minor's misrepresentation of his age has no effect on his ability to disaffirm a contract. (5 points)
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True False 9. Ordinarily, an item is not considered to be a necessary if a parent or guardian already supplies the minor with similar items. (5 points) True False 10. Under the theory that alcohol and drug use should not be rewarded, today most courts say that contracts made by intoxicated people are
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This note was uploaded on 02/28/2012 for the course ACCT 460 taught by Professor Charley during the Spring '12 term at Aachen University of Applied Sciences.

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ch14 - Ch.14 Quiz Instructions Please read the questions...

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