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On January 1, Year 1, Bob, 16 years old, enters into a contract with Jones Chevrolet to purchase a truck. The contract provides that Bob must pay monthly payments equal to $500 each for 4 years. Bob makes all the payments for Year 1, but on January 1, Year 2, Bob stops making payments, but keeps the truck. Bob turns 18 on January 1 of Year 3 and continues to use the truck, but still does not make payments. On January 1 of Year 5, Jones Chevrolet sues Bob for the payments he has not made. How much can Jones Chevrolet collect from Bob, if anything?
Other sets by this creatorOther Quizlet setsCindy Smith, age 16, buys a Chevy Camaro from Mike Mason, age 23, for $4,000. Cindy's parents, who give her everything she wants, loaned her the money for the car. The reason for Cindy's purchase is that all her friends have cars and she feels left out without one. One week after buying the car, however, Cindy changes her mind and told Mike that she wants to disaffirm the contract. When Mike comes to pick up the car and give Cindy her money, though, Cindy changes her mind again, telling Mike that "I'll stick by the deal." But when Cindy's parents gave her a new car for her seventeenth birthday, she finally decides to disaffirm once again. Which of the following is true?
a. Cindy cannot disaffirm because the car is a necessary.
b. Cindy cannot disaffirm because she ratified the contract by saying, "I'll stick by the deal."
c. Cindy cannot disaffirm because we have a sale of goods and Article 2 of the UCC says that 16
is
the age of contractual capacity. d. Cindy can still disaffirm.
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Which of the following is untrue regarding the contracts of intoxicated persons?
If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable.
The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency.
Slight intoxication will destroy one's contractual capacity.
Individuals who are taking prescribed medication or who are involuntarily intoxicated are treated the same as those who are incompetent under the cognitive ability test.
Slight intoxication will destroy one's contractual capacity.
Ratification can occur in which of the following ways?
Through express language.
As implied from conduct.
Through failure to make a timely disaffirmance.
All of the above.
All of the above.
Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. What result?
Fay is still liable because selling the skis amounts to a ratification.
Joanne, a minor, sold her laptop computer to Bruce, an adult. Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor. Under the Uniform Commercial Code, Joanne may:
avoid her contract to Bruce and recover her laptop.
not avoid her contract to Bruce and may not recover her laptop.
register with the UCC filing department and require that if
Anna sells the laptop she must give
Joanne the right of first refusal.
None of the above.
not avoid her contract to Bruce and may not recover her laptop.
Steve purchases a four-wheel-drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, what would happen?
Steve would be out of luck.
Steve must have the truck repaired.
Steve will receive his money less the depreciation in value of the vehicle.
Steve may simply return the vehicle and get his money.
Steve may simply return the vehicle and get his money.
When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party enters into a contract with the minor:
the minor has lost his right to disaffirm the contract because of the misrepresentation.
the adult party can recover damages from the minor in tort.
the minor is required to restore the other party to the position occupied before the making of the contract.
There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.
There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.
Which of the following would be an invalid ratification?
Seventeen-year-old Tom ratifies a contract which he signed two months ago.
Eighteen-year-old Troy disaffirms a contract he signed when he was seventeen. He does so two weeks after his eighteenth birthday.
Two weeks after attaining his eighteenth birthday, Stacey calls the bank to assure them that she will continue making payments on the loan agreement she signed a month before her eighteenth birthday.
Two weeks after his eighteenth birthday, Mike makes a payment on the installment contract he signed a month before.
Seventeen-year-old Tom ratifies a contract which he signed two months ago.
The Uniform Commercial Code has changed the traditional common law view regarding goods the minor has sold and that the buyer resold to a good faith purchaser for value. Under the UCC:
the good faith purchaser for value acquires legal title.
Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?
Violet may not disaffirm the contract.
Violet may disaffirm the contract at any time.
Violet may disaffirm the contract when Tim becomes an adult.
Tim may ratify the contract at any time during his minority.
Violet may not disaffirm the contract.
Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive and now wishes to cancel the order.
Cheryl may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary.
Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.
Donald has expressly ratified the contract.
Don, a minor, contracts to sell 100 acres of land to Jerry who is also a minor. Don reaches the age of 21 as does Jerry. Don takes no action to avoid the contract. Which of the following most accurately describes the status?
Don has ratified the contract.
Don has not ratified the contract.
The contract remains executory.
There is no contract, so there is no legal obligation owed by either party.
Don has ratified the contract.
(T/F)
To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions and unable to act in a reasonable manner.
False
Which of the following is least classifiable as a necessity for which a minor will be held liable on a contract?
Cassette tapes.
School supplies.
Clothing.
An automobile.
Cassette tapes.
The age of majority:
is twenty-one years under common law.
is fixed by statute at eighteen in most states.
may be different from one state to another.
All of the above.
All of the above.
In which of the following situations would a minor be unable to disaffirm a contract which he had made?
Where the minor wishes to perform part of a contract and disaffirm another part of the same contract.
In the majority of states, a minor who purchases a vehicle and then wrecks the vehicle, may:
disaffirm the contract by returning the vehicle and can get a full refund.
Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy.
This contract is void.
Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?
No, if Mark's father bought it without knowing that Mary was a minor.
Robert Briscoe is 17 years old. He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup. Bouyers falls for this lie and sells him the pickup. Under the prevailing view, which of the following is correct?
Robert may disaffirm and get his money back.
Which of the following is untrue regarding the contracts of incompetent persons?
An incompetent person is liable for necessaries.
Unlike a minor, an incompetent person can never ratify a contract.
To avoid a contract, a person need not be permanently incompetent.
A person is competent unless he is unable to understand the nature and effect of his act.
Unlike a minor, an incompetent person can never ratify a contract.
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