Chapter 14 Quiz

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Question #1

An unconscionable contract is one in which the terms of the agreement are oppressive, unscrupulous, or grossly unfair.

A TRUE

B FALSE

Question #2

A minor can disaffirm a contract at any time but remains legally obligated to perform it.

A FALSE

B TRUE

Question #3

Accepting and giving legal force to an obligation that previously was not enforceable is

A illegal.

B disaffirmance.

C ratification.

D emancipation.

Question #4

A minor can ratify a contract and thus make it enforceable.

A FALSE

B TRUE

Question #5

Evelyn is a minor. As a minor, she

A is not usually legally bound by a contract.

B all of the choices.

C has the right to avoid liability under a valid contract.

D has the capacity to enter into a valid contract.

Question #6

A contract entered into by an intoxicated person can be voidable.

A TRUE

B FALSE

Question #7

Bern, a minor, signs a contract to buy a Caterwauler jet boat from Dahl, an adult. Dahl

A can avoid as much of the contract as Bern elects to avoid.

B can avoid the contract without Bern’s consent.

C cannot avoid the contract.

D must obtain Bern’s consent to avoid the contract.

Question #8

Twig is fifteen. In most states, for contractual purposes, Twig would be considered a minor until she is

A twenty-one.

B seventeen.

C sixteen.

D eighteen.

Question #9

Seth is mentally incompetent but has not been adjudged by a court to be incompetent. Seth enters into a contract with Toby for the cleaning and maintenance of Seth’s warehouse. Most likely, the contract is

A enforceable if Toby did not know that Seth was mentally incompetent.

B voidable if Seth did not comprehend the consequences.

C void.

D enforceable if the warehouse needs cleaning and maintenance.

Question #10

The lack of a license in certain occupations bars the enforcement of work-related contracts.

A FALSE

B TRUE

Question #11

If intoxication is purely voluntary, the intoxicated person’s contracts are not voidable.

A FALSE

B TRUE

Question #12

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

A invalid because it is part of a sale of an ongoing business.

B valid if both parties are justifiably ignorant of the facts.

C invalid because of the unreasonable terms of area and time.

D valid because it is part of a sale of an ongoing business.

Question #13

Generally neither party to an illegal contract can sue for breach.

A TRUE

B FALSE

Question #14

Among the requirements for a valid contract, courts generally presume the existence of

A minority.

B contractual capacity.

C mental incompetence.

D none of the choices.

Question #15

A promise to refrain from competing in business with another is considered to be unconscionable.

A FALSE

B TRUE

Question #16

A party may have the capacity to enter into a valid contract and the right to avoid liability under it.

A TRUE

B FALSE

Question #17

A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.

A FALSE

B TRUE

Question #18

Foy, a minor, misrepresents his age when entering into a contract to buy a car from Gas Hogs Inc. Foy takes possession of the car, but makes no payments on the contract and tries to disaffirm it. Most likely, Gas Hogs can recover

A an amount equal to the wholesale value of the car.

B the balance due on the contract.

C nothing.

D the car, but not any of the balance due on the contract.

Question #19

Von, a minor, wants to return a set of skis that he bought from Winter Sports. He used—and wrecked—the skis. In a state in which a duty of restitution is imposed, Von most likely

A can return the skis “as is” and avoid further liability.

B is not required to return the skis due to his or her minority.

C must return the skis and pay for the damage.

D cannot return the skis unless they can be fully restored.

Question #20

A minor can enter into any contract an adult can, without exception.

A FALSE

B TRUE

Question #21

A court usually will enforce a covenant not to compete provided its restrictions are reasonable.

A TRUE

B FALSE

Question #22

Dari, a minor, wants to disaffirm a contract that she entered into with Echo, a cell service company. The law in Dari’s state, as in all states, permits minors to disaffirm

A executory contracts only.

B executory and fully executed contracts.

C none of the choices.

D fully executed contracts only.

Question #23

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

A FALSE

B TRUE

Question #24

The contracts entered into by a minor are voidable at the option of that minor.

A FALSE

B TRUE

Question #25

Les, a minor, enters into a contract to buy a dirt bike from Motocross LLC. Les can ordinarily disaffirm the contract

A for a reasonable time after coming of age.

B all of the choices.

C in a timely manner.

D at any time during minority.

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