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What was the ruling in Adrian Lopez v.Kmart Corporation,the case in the text regarding whether a minor could disaffirm an arbitration clause in an employment contract?


A) Plaintiff entered into a valid arbitration agreement with his employer,but the employer properly exercised its right to void the contract.
B) Plaintiff entered into a valid arbitration agreement with his employer,but properly exercised his statutory right of disaffirmance,thereby rescinding the arbitration contract and rending it a nullity.
C) Plaintiff did not enter into a valid arbitration agreement with his employer because he was a minor,and therefore the agreement was a nullity.
D) Plaintiff entered into a valid arbitration agreement with his employer,but did not properly exercise his statutory right of disaffirmance,thereby he was required to arbitrate.
E) Plaintiff entered into a valid arbitration agreement with his employer,but the employer failed to exercise its right to void the contract.

F) B) and D)
G) All of the above

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When a contract is overturned because it is deemed to have illegal subject matter or is illegal to perform,it is generally considered voidable.

A) True
B) False

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[Poker dealer] Roland and Parna sign a contract for Parna to work as a poker dealer for a minimum of one year in Roland's casino.The contract includes a requirement for Roland to pay for a training program for Parna for the software system used throughout the casino.Parna completes the program and obtains a certificate.The week before Parna begins work at Roland's casino,their state passes a law that all poker dealers must be 21 years old.Parna,however,is only nineteen. -Is Roland required to employ Parna?


A) Yes,because the contract was ratified when Parna completed the training program.
B) Although the contract was legal when formed,its subject later became illegal under a new statute,thus it is voidable by either party.
C) 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.
D) Yes,because the contract was legal when formed.
E) No,because the subject matter of the contract is illegal,thus it is void.

F) C) and D)
G) B) and C)

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Which of the following involves overly harsh or lopsided substance in an agreement?


A) Exculpatory clauses.
B) An in pari delicto agreement.
C) Adhesion conscionability.
D) Substantive unconscionability.
E) Procedural unconscionability.

F) A) and E)
G) C) and D)

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Which of the following statements regarding contracts for necessaries entered into by minors is false?


A) A contract for a necessary is a contract that supplies the minor with the basic necessities of life.
B) The purpose of holding minors liable for necessaries is to ensure that minors are able to obtain the basic necessities of life when their parents will not provide them.
C) Whether something is considered a necessary is related to whether the minor's parents are willing to provide the item in question for the minor.
D) A minor can disaffirm a contract for necessaries,but the minor will still be held liable for the reasonable value of the necessary.
E) A minor cannot disaffirm contracts for necessaries.

F) None of the above
G) A) and B)

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If a minor enters into contract with an adult,both parties may disaffirm a contract based upon the minor's lack of majority.

A) True
B) False

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If Briana subsequently obtains a valid license,would her agreement with Nedra be enforceable?


A) Yes,because the contract can be severed.
B) Yes,but only if she pays the licensing fee.
C) No,because employment contracts cannot be severed.
D) Yes,but only if Nedra did not deem the contract voidable.
E) No,because the agreement was illegal and is void.

F) D) and E)
G) A) and C)

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In Lopez v.Kmart Corporation,the case in the text regarding disaffirmance,did the court find the minor plaintiff's disaffirmance of an employment contract to be reasonable?


A) Yes,because the disaffirmance occurred within six months of reaching the age of majority.
B) Yes,because the type of contract at issues was an arbitration agreement.
C) No,because the plaintiff could have disaffirmed the contract when he was under the age of majority but chose not to do so.
D) Yes,because the disaffirmance occurred within one month of reaching the age of majority.
E) The court did not find the disaffirmance to be reasonable.

F) C) and D)
G) None of the above

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Which of the following is true once a guardian has been appointed for a person who has been adjudicated insane?


A) If a person has been adjudicated insane and has a guardian appointed,that person has no capacity to enter into contracts and any contract he does attempt to enter into is void.
B) If a person has been adjudicated insane and has a guardian appointed,that person retains capacity to enter into contracts so long as the other party to the contract is aware of the insanity issue.
C) If a person has been adjudicated insane and has a guardian appointed,that person has no capacity to enter into contracts and any contract he does attempt to enter into is voidable.
D) If a person has been adjudicated insane and has a guardian appointed,that person retains capacity to enter into contracts so long as the other party to the contract is aware of the guardian's status.
E) If a person has been adjudicated insane and has a guardian appointed,that person retains capacity to enter into contracts so long as the other party to the contract is aware of the guardian's status and also the insanity issue.

F) A) and C)
G) B) and E)

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Which of the following is a term for laws that limit the types of business activities in which parties may legally engage on Sundays?


A) Christian laws
B) Blue laws
C) True laws
D) Red laws
E) Colonial laws

F) A) and E)
G) A) and D)

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What is the term for giving a loan at an interest rate that exceeds the legal maximum?


A) Interest prohibition
B) No enforceable legal violation
C) Usury
D) Plenary
E) Principle reduction

F) B) and E)
G) A) and D)

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Parents are responsible for the torts committed by their minor children in all states.

A) True
B) False

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[Zaltar Zeb] Zeb suffers from delusions that he is from the planet Zaltar.Zeb's contract with DigiTV,his digital television service provider,has expired.After comparing his past payments to the potential savings from satellite television provider SatTV,Zeb decides to sign a two-year contract with SatTV.After six months with SatTV,Zeb realizes he paid less with DigiTV and he now wants to be released from his contract with SatTV. -Is the SatTV contract legally binding on Zeb?


A) Yes,although Zeb may suffer from mental problems,Zeb appears to still understand the nature of the contract and the obligations it imposes.
B) No,because he did not ratify the contract.
C) Yes,because,even though Zeb understands the nature of the contract and the obligations it imposes,Zeb did not disaffirm the contract within a reasonable period of time.
D) No,because contracts with mentally incapacitated persons are void.
E) No,because contracts with mentally incapacitated persons are void,unless expressly ratified.

F) B) and E)
G) A) and B)

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Which of the following occurs when a person reaches the age of majority and states,either orally or in writing,that he or she intends to be bound by the contract entered in to as a minor?


A) Implied novation
B) Implied ratification
C) Express ratification
D) Express novation
E) Express ratification if the statement is in writing but nothing if the statement is only oral

F) A) and B)
G) B) and D)

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Which of the following is true regarding Rose and her parents asserting that the car was a necessary?


A) Even if a minor disaffirms a contract for a necessary,the minor will still be held liable for the reasonable value of the necessary.
B) Whether or not parents would buy the item at issue is irrelevant in addressing a claim that an item was a necessary.
C) A minor may not disaffirm a contract for a frivolous matter that is clearly not required.
D) The claim will have no effect because the law does not recognize the concept of necessaries when minors are involved.
E) Social status is irrelevant as a matter of law in addressing a claim that an item was a necessary.

F) A) and C)
G) A) and E)

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Is Ines correct in claiming that no judge in the country would enforce such an agreement?


A) She is incorrect because all courts approve such agreements so long as it can be shown the employee gained a benefit other than pay from the employment.
B) She is incorrect because while no court would approve a geographical restriction,some courts recognize time restrictions as being valid.
C) She is incorrect because such agreements are criminally illegal in every state.
D) She is correct because such agreements are considered in restraint of trade in every state.
E) She is incorrect because courts across the country vary in regards to the enforceability of such agreements.

F) All of the above
G) B) and E)

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In Great Britain,the age of majority regarding the right to contract is:


A) 21
B) 18
C) 16
D) 19
E) There is not a set age of majority

F) A) and C)
G) A) and E)

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A party who claims that he or she could not understand contractual terms because of tiny,hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following?


A) Procedural unconscionability.
B) Exculpatory clauses.
C) An in pari delicto agreement.
D) Adhesion conscionability.
E) Substantive unconscionability.

F) A) and E)
G) A) and D)

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Which of the following is true regarding an agreement to commit a crime or a tort?


A) An agreement to commit a crime is unenforceable,and an agreement to commit a tort is unenforceable unless a privacy tort is involved in which case the agreement is enforceable.
B) An agreement to commit a crime is unenforceable,and an agreement to commit a tort is unenforceable.
C) An agreement to commit a crime is enforceable and deemed legal so long as the substance of the agreement was deemed a crime after the agreement was entered into,but an agreement to commit a tort is unenforceable.
D) An agreement to commit a tort is enforceable,but an agreement to commit a crime is unenforceable.
E) An agreement to commit a crime is unenforceable,and an agreement to commit a tort is unenforceable unless a business tort is involved in which case the agreement is enforceable.

F) A) and B)
G) All of the above

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[Amazing Fabrics] Amazing Fabrics,owned by Peri,has provided top-quality draperies,tablecloths and other linens to many of Chicago's high-end hotels for decades.Peri has an employment contract with his top designer,Calvin,which states that,if Calvin leaves Amazing Fabrics,he is prohibited from working for any competitor and that the clause remains effective even if the business is sold to new owners.Peri decides to sell his business to Lisette and retire.The contract for the sale of the business includes a clause that Peri shall not open a business that competes with Amazing Fabrics anywhere in the Chicago metropolitan area for two years.A year after signing the contract,Peri realizes he is bored in his retirement and opens Fine Fabrics,which provides tablecloths and other linens to Chicago area restaurants and hotels.Peri calls Calvin and persuades him to leave Amazing Fabrics and work for Peri.Many of Lisette's customers prefer to work with Calvin and move their business to Peri's new company.Lisette wants to sue both Peri and Calvin for breach of contract. -What would likely be the outcome of Lisette's breach of contract claim against Peri?


A) Lisette would likely be successful because covenants not to compete in conjunction with the sale of a business are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location.
B) Lisette would likely be successful because covenants not to compete in employment contracts are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location.
C) Peri would likely be successful because,although covenants not to compete in conjunction with the sale of a business are generally enforceable,Lisette's contract was unreasonable in that it would have restricted Peri from opening any business.
D) Peri would likely be successful because covenants not to compete in employment contracts are generally enforceable and Lisette's contract was for a reasonable length of time and a reasonable location.
E) Peri would likely be successful because covenants not to compete in conjunction with the sale of a business are generally not enforceable.

F) A) and E)
G) A) and C)

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