Chapter 14 Study Guide Quiz

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Question #1

When one party uses fraud to induce another party to enter into an illegal bargain, the second party will be allowed to recover for the performance or its value.

A False

B True

Question #2

In some states, misrepresentation of age is enough to prevent disaffirmance.

A False

B True

Question #3

In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it or recover damages under it.

A True

B False

Question #4

In general, an illegal contract is void.

A False

B True

Question #5

In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

A False

B True

Question #6

In acontract, an exculpatory clause releases a party from liability in the event of monetary or physical injury no matter who is at fault.

A True

B False

Question #7

If the illegal part of a bargain has not yet been performed, the party rendering performance must fulfill the contract before seeking damages.

A True

B False

Question #8

Contracts in restraint of trade usually positively affect the public policy that favors competition in the economy.

A True

B False

Question #9

An intoxicated person, after becoming sober, may ratify a contract expressly or impliedly.

A False

B True

Question #10

All adhesion contracts are unconscionable.

A False

B True

Question #11

A person who has been determined by a court to be mentally competent cannot form a legally binding contract with another party.

A False

B True

Question #12

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods.

A False

B True

Question #13

A contract entered into by an intoxicated person is never valid.

A True

B False

Question #14

A contract entered into by a minor is voidable at the option of either of the contracting parties.

A True

B False

Question #15

While a minor, Uri misrepresents his age as twenty-one to purchase a motorbike from Van’s Dirt Bikes & Scramblers. Ordinarily, Uri can

A none of the choices.

B ratify the contract, keep the motorbike, and recover any payments that he made to Van’s.

C reject the contract, keep the motorbike, and recover any payments that he made to Van’s.

D disaffirm the contract but must return the motorbike.

Question #16

Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation. A court decides that the covenant is overly restrictive. Depending on the jurisdiction, the court will likely

A reform its terms to prevent any undue burden.

B refuse to enforce it unless Penultimate pays a fine to the court.

C enforce it as written so as not to undercut the freedom of contract.

D enforce it but evaluate its effects over time.

Question #17

Lydia, a minor, charges the cost of a smartphone at a Mobile Devices & Minutes store. Two nights later, Lydia loses the phone at Natural Foods restaurant. She disaffirms the phone’s purchase. Lydia owes Mobile Devices the reasonable value of the phone

A if it is deemed unique.

B if it is deemed a luxury.

C under no circumstances.

D if it is deemed a necessary.

Question #18

Lucy, a minor, disaffirms a contract for necessaries without returning the goods. To Manny’s Food Mart, the seller, Lucy is required to pay

A nothing.

B the reasonable value of the goods.

C the sales price of the goods.

D the ultimate worth of the goods.

Question #19

Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical procedure. This contract is enforceable by

A no one.

B Keaton.

C Jolie’s medical insurance company.

D Jolie.

Question #20

Intoxicated but still capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Downloads, Inc. This contract is

A enforceable.

B unenforceable if Cricket disaffirms it.

C unenforceable if Downloads disaffirms it.

D unenforceable because Cricket was intoxicated.

Question #21

Geri is a minor. Without her parents’ knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri’s parents are liable for

A up to half of the price of the ticket.

B no part of the price of the ticket.

C the entire price of the ticket.

D up to two-thirds of the price of the ticket.

Question #22

Fact Pattern 14-B1
Bay City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault. Coco’s Chocolate Creations signs a lease with Bay City that contains the clause.

Refer to Fact pattern 14-B1. This clause is

A a covenant not to compete.

B an adhesion contract.

C an illusory promise.

E an exculpatory clause.

Question #23

Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She can

A foreclose on the property to obtain any unpaid amount.

B keep the commission if it has already been paid.

C not collect the commission, keep it, or foreclose on the property.

D collect the commission if it has not been paid.

Question #24

At age seventeen, Daryl enters into a contract to buy a dozen movies from eHD Stream, Inc., an online video service. Soon after reaching the age of majority, Daryl attempts to disaffirm the contract. eHD files a suit against him. The court will most likely consider the contract ratified if it is

A exculpatory.

B executed.

C express or implied.

D emancipated.

Question #25

A court adjudicates Jimi mentally incompetent and appoints Krispin to be his guard¬ian. Later, without Krispin’s knowledge, Jimi signs a contract to sell his lake cabin to Lazar for its real market value. The contract is

A enforceable if Jimi knew the market value of the farm.

B enforceable if Lazar has been recorded to be the owner of the cabin.

C void.

D enforceable if Jimi comprehended the consequences.

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Fresh Grad Lands Job as Real Estate Agent With Help from Professional Writers

Chapter 14 Study Guide Quiz

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