Question 1

Payton gets a job as a salesman at an auto-parts store.He agrees that if he leaves his employment,he will not work for another auto-parts store within 25 miles for a period of three years.That type of agreement is called a[n] ________.

Accepted Answer

A)  Covenant not to compete
B)  Working covenant
C)  Employment covenant
D)  Termination agreement
E)  Public policy agreementF) A) and B)
G) B) and C)

Question 2

If a court has declared Zeb insane and his sister is appointed guardian,which of the following statements would be true?

Accepted Answer

A)  Zeb's sister has the sole legal capacity to enter contracts on Zeb's behalf and any contract Zeb enters is void.
B)  Zeb may enter contracts,but they are voidable by his sister.
C)  Zeb's sister may enter contracts on Zeb's behalf,but only with Zeb's affirmance.
D)  Zeb may enter contracts,but they may be disaffirmed by his sister.
E)  Both Zeb and his sister have capacity to enter contracts,however,any contract Zeb enters may be disaffirmed by Zeb.F) A) and B)
G) None of the above

Question 3

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Accepted Answer

A)  25
B)  45
C)  30
D)  49
E)  50F) None of the above
G) A) and D)

Question 4

When a minor gets married,she or he is considered ________ in most cases.

Accepted Answer

A)  Disaffirmed
B)  Released
C)  Freed
D)  Emancipated
E)  Either freed or disaffirmed depending on the circumstancesF) A) and D)
G) C) and E)

Question 5

Minors can disaffirm contracts for necessaries,but they will still be held liable for the reasonable value of the necessary.

Accepted Answer

A) True 
 B)False

Question 6

Once a young person reaches the age of majority and ratifies a contract made as a minor,he or she has a reasonable period of time to void the contract.

Accepted Answer

A) True 
 B)False

Question 7

Explain Great Britain's approach to the age of majority.

Accepted Answer

There is no certain age in Great Britain...

Question 8

As a general rule,most states will not allow a minor to disaffirm contracts for which of the following items?

Accepted Answer

A)  Life insurance,health insurance,and psychological counseling
B)  Education loan contracts and psychological counseling,but not life insurance or health insurance
C)  Health insurance and psychological counseling,but not life insurance
D)  Psychological counseling,but not health insurance or life insurance
E)  Health insurance,but not life insurance or psychological counselingF) A) and E)
G) A) and C)

Question 9

The term ________ refers to the fact that an agreement is so unfair that it is void of conscience.

Accepted Answer

A)  Unconscionable
B)  Unrealistic
C)  Outrageous
D)  Unreasonable
E)  UnbelievableF) A) and C)
G) A) and E)

Question 10

When a former minor does not specifically state that he affirms a contract entered into as a minor,but takes some action that is consistent with intent to ratify the contract,which of the following has occurred?

Accepted Answer

A)  Continued safety
B)  Express novation
C)  Implied ratification
D)  Express ratification
E)  Implied novationF) C) and D)
G) B) and C)

Question 11

Is Roland required to pay for the training program?

Accepted Answer

A)  No,although the training program was legal,the contract contains an illegal subject and is void.
B)  Although the contract was legal when formed,its subject later became illegal under a new statute,thus both parties are discharged from their obligations under the contract.
C)  Although the contract was legal when formed,its subject later became illegal under a new statute,thus it is voidable by either party.
D)  Yes,the training program was legal and the legal part of the contract can be severed from the illegal part.
E)  Yes,only Parna has the right to void the contract.F) B) and E)
G) A) and E)

Question 12

In Great Britain,a young person may enter into a contract at age 18.

Accepted Answer

A) True 
 B)False

Question 13

A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries.

Accepted Answer

A) True 
 B)False

Question 14

Trina lists her convertible for sale on Facebook for $12,000,the fair market value.Dion e-mails Trina and offers to buy the car for the price Trina listed.Trina is not aware that Dion had been drinking for the past few hours.Is the contract to buy Trina's car likely to be valid?

Accepted Answer

A)  Yes,because the level of intoxication is the primary factor in determining whether the contract is likely to be valid.
B)  Yes,because Trina did not know Dion was intoxicated and the agreement is fair.
C)  Yes,but the only relevant question is whether Trina knew Dion was intoxicated;the price is not relevant.
D)  No,because it is irrelevant that Trina did not know of Dion's intoxication.
E)  No,because intoxicated persons lack capacity to determine fair market value.F) A) and B)
G) A) and C)

Question 15

In King v.Riedl,the plaintiffs claimed that the defendant did not have the right to proceed against them for sums allegedly owed,because the contractor was not licensed as a residential home builder as required by state law) .What was the result on appeal?

Accepted Answer

A)  The court ruled that the defendant could maintain an action against the plaintiffs and prevail because the proof showed that he was eligible for the required license although he had not yet obtained it.
B)  Although recognizing that the contractor's failure to be properly licensed would not in and of itself bar recovery,the court ruled in favor of the plaintiffs because the facts at trial showed that the contractor performed inadequate work.
C)  The court ruled in favor of the plaintiffs on the basis that the contractor was statutorily barred from bringing an action to enforce payment because he lacked a residential home builder license and the amount of the contract satisfied statutory requirements.
D)  The court ruled that because the contractor lacked the required state license and the amount of the contract satisfied statutory requirements,under common law he could only recover for expenses for materials and labor costs,not the full contract price.
E)  The court ruled that the defendant could maintain an action against the plaintiffs and prevail because the state statute only applied when the cost of a contractual undertaking exceeded $10,000,and because the contractor billed periodically,the plaintiffs were never presented with a bill exceeding $10,000.F) C) and D)
G) A) and B)

Question 16

A statement releasing one of the parties to an agreement from all liability,regardless of who is at fault or what the injury suffered is,would be referred to as a[n] ________ agreement.

Accepted Answer

A)  Substantive
B)  Adhesion
C)  Exculpatory
D)  In pari delicto
E)  Res IpsaF) B) and D)
G) C) and D)

Question 17

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed ________.

Accepted Answer

A)  Usury
B)  Illegal and unenforceable
C)  Enforceable but with a fine
D)  Enforceable without a fine
E)  ExecutedF) A) and C)
G) A) and D)

Question 18

Today,married women have been removed from the category of those lacking contractual capacity,although in a few states their capacity to enter into certain kinds of contracts is still limited.

Accepted Answer

A) True 
 B)False

Question 19

Maurice is purchasing a bowling alley called Stay in Your Lane from Vlad.The two sign a covenant not to compete prohibiting Vlad from opening a bowling alley within 25 miles of Stay in Your Lane for one year.Assuming that the covenant was drafted properly,is it likely to be enforced,and why or why not? Also,discuss arguments for and against covenants not to compete in the sale of a business.

Accepted Answer

The covenant is likely to be enforced be...

Question 20

In most states a person is given full legal capacity to enter into contracts when he or she becomes before reaching the age of majority.

Accepted Answer

A)  Released
B)  Emancipated
C)  Employed
D)  Freed
E)  AcknowledgedF) A) and C)
G) B) and C)

Exam 16: Capacity and Legality

In most states a person is given full legal capacity to enter into contracts when he or she becomes before reaching the age of majority.

Correct Answer
verified

The term ________ refers to the fact that an agreement is so unfair that it is void of conscience.

Correct Answer
verified

In Great Britain,a young person may enter into a contract at age 18.

Correct Answer
verified

In King v.Riedl,the plaintiffs claimed that the defendant did not have the right to proceed against them for sums allegedly owed,because the contractor was not licensed as a residential home builder as required by state law) .What was the result on appeal?

Correct Answer
verified

Once a young person reaches the age of majority and ratifies a contract made as a minor,he or she has a reasonable period of time to void the contract.

Correct Answer
verified

A statement releasing one of the parties to an agreement from all liability,regardless of who is at fault or what the injury suffered is,would be referred to as a[n] ________ agreement.

Correct Answer
verified

As a general rule,most states will not allow a minor to disaffirm contracts for which of the following items?

Correct Answer
verified

When a former minor does not specifically state that he affirms a contract entered into as a minor,but takes some action that is consistent with intent to ratify the contract,which of the following has occurred?

Correct Answer
verified

Is Roland required to pay for the training program?

Correct Answer
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Correct Answer
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The covenant is likely to be enforced be...
View Answer

Explain Great Britain's approach to the age of majority.

Correct Answer
verified
There is no certain age in Great Britain...
View Answer

Payton gets a job as a salesman at an auto-parts store.He agrees that if he leaves his employment,he will not work for another auto-parts store within 25 miles for a period of three years.That type of agreement is called a[n] ________.

Correct Answer
verified

If a court has declared Zeb insane and his sister is appointed guardian,which of the following statements would be true?

Correct Answer
verified

When a minor gets married,she or he is considered ________ in most cases.

Correct Answer
verified

Today,married women have been removed from the category of those lacking contractual capacity,although in a few states their capacity to enter into certain kinds of contracts is still limited.

Correct Answer
verified

Trina lists her convertible for sale on Facebook for $12,000,the fair market value.Dion e-mails Trina and offers to buy the car for the price Trina listed.Trina is not aware that Dion had been drinking for the past few hours.Is the contract to buy Trina's car likely to be valid?

Correct Answer
verified

Minors can disaffirm contracts for necessaries,but they will still be held liable for the reasonable value of the necessary.

Correct Answer
verified

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Correct Answer
verified

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed ________.

Correct Answer
verified

A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries.

Correct Answer
verified

Exam 16: Capacity and Legality

In most states a person is given full legal capacity to enter into contracts when he or she becomes before reaching the age of majority.

Correct AnswerverifiedShow Answer

The term ________ refers to the fact that an agreement is so unfair that it is void of conscience.

Correct AnswerverifiedShow Answer

In Great Britain,a young person may enter into a contract at age 18.

Correct AnswerverifiedShow Answer

In King v.Riedl,the plaintiffs claimed that the defendant did not have the right to proceed against them for sums allegedly owed,because the contractor was not licensed as a residential home builder as required by state law) .What was the result on appeal?

Correct AnswerverifiedShow Answer

Once a young person reaches the age of majority and ratifies a contract made as a minor,he or she has a reasonable period of time to void the contract.

Correct AnswerverifiedShow Answer

A statement releasing one of the parties to an agreement from all liability,regardless of who is at fault or what the injury suffered is,would be referred to as a[n] ________ agreement.

Correct AnswerverifiedShow Answer

As a general rule,most states will not allow a minor to disaffirm contracts for which of the following items?

Correct AnswerverifiedShow Answer

When a former minor does not specifically state that he affirms a contract entered into as a minor,but takes some action that is consistent with intent to ratify the contract,which of the following has occurred?

Correct AnswerverifiedShow Answer

Is Roland required to pay for the training program?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe covenant is likely to be enforced be...View AnswerShow Answer

Explain Great Britain's approach to the age of majority.

Correct AnswerverifiedThere is no certain age in Great Britain...View AnswerShow Answer

Payton gets a job as a salesman at an auto-parts store.He agrees that if he leaves his employment,he will not work for another auto-parts store within 25 miles for a period of three years.That type of agreement is called a[n] ________.

Correct AnswerverifiedShow Answer

If a court has declared Zeb insane and his sister is appointed guardian,which of the following statements would be true?

Correct AnswerverifiedShow Answer

When a minor gets married,she or he is considered ________ in most cases.

Correct AnswerverifiedShow Answer

Today,married women have been removed from the category of those lacking contractual capacity,although in a few states their capacity to enter into certain kinds of contracts is still limited.

Correct AnswerverifiedShow Answer

Trina lists her convertible for sale on Facebook for $12,000,the fair market value.Dion e-mails Trina and offers to buy the car for the price Trina listed.Trina is not aware that Dion had been drinking for the past few hours.Is the contract to buy Trina's car likely to be valid?

Correct AnswerverifiedShow Answer

Minors can disaffirm contracts for necessaries,but they will still be held liable for the reasonable value of the necessary.

Correct AnswerverifiedShow Answer

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Correct AnswerverifiedShow Answer

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed ________.

Correct AnswerverifiedShow Answer

A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
The covenant is likely to be enforced be...
View Answer

Correct Answer
verified
There is no certain age in Great Britain...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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