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Exam 16: Capacity and Legality

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Question 21

True/False

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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.

A) True
B) False

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Question 22

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A contract overturned due to having illegal subject matter or for being illegal to perform is generally declared voidable.

A) True
B) False

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Question 23

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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?

In regard to the rule used in determining the obligations of a minor on disaffirmance of a contract, discuss both the traditional rule and also the modification of the rule applied in a number of states today, set forth which of the rules you support, and why.

As a general rule, parents are not liable for contracts entered into by their minor children.

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

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

"Useless Friend." Charles, who is very gullible, is friends with Bobby. Bobby, who cannot be trusted, decides to try to bind Charles to a contract in Bobby's favor. Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80 per month in payment. The contract incorporated by reference terms on the back. The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby, do his laundry, and clean his apartment. Bobby is also very angry with his former girlfriend, Tessa, and decides to start rumors, that would constitute the tort of defamation, such as that she has a vile disease, cheated on tests, and stole from friends. Bobby wants to enlist the help of Charles in smearing Tessa but knows that Charles would be hesitant to assist in his endeavors. One evening, however, Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby. Bobby had him sign a contract agreeing to defame Tessa for $50. When he sobers up, Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa, who also happens to be Charles' new girlfriend. He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous. -Which of the following is true regarding Charles' claim that he had no obligation to defame Tessa?

"Beauty Shop Woes." When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, she quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer who was threatening to sue her because her hair turned green after Janice worked on it. Janice said that she knew that the customer's hair was damaged; but that she told the customer that odd results could result from a dye attempt, and had her sign a contract that she released Janice from all liability and would not sue. The customer, however, sued anyway. -The agreement Rick and Janice entered into is referred to as which of the following?

For purposes of determining capacity, intoxicated persons include those under the influence of alcohol, but not drugs.

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

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?

Because ______ does not favor intoxication, the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification as ratifying the contract.

Which of the following is the age of majority in regard to the right to contract in Great Britain?

What was the result in the Case Opener in which customers of Apple attempted to disaffirm purchases of game currency by their children?

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.

"Irresponsible Teen." At age 17, in a state in which the age of majority is 18, Sally purchased a prom dress from Formal Stuff. She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund. The dress had clearly been worn and had a purple stain which Sally claimed was from grape juice. Additionally, a few days before she turned 18, Sally purchased a used car from Dings and Dents used cars. She had a deal whereby she paid $100 per month on the car. She drove the car and made payments for six months after she turned 18. Sally then returned the car to Dings and Dents, informed the owner that she was under 18 when she entered into the contract to purchase the car, and told the owner that she was returning the car for a full refund. Dings and Dents claimed the car was a necessity. Sally and her parents disagreed claiming that the parents were ready and willing to provide a car to Sally, and that she only purchased the car from Dings and Dents because she liked that particular style and color. When purchases of the dress and car were made, the sellers knew that Sally was under the age of 18. -In the dispute between Sally and the owner of Dings and Dents, which of the following is true regarding the effect of Sally turning 18 before she attempts to disaffirm the contract?

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

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself?

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