CHAPTER 13 - CAPACITY QUIZ
1. Skippy, who is 14, enters into a contract with a book club.
What is the status of this contract?
a. valid
b. void
c. voidable
d. unenforceable
2. Skippy, a minor, forms a voidable contract. What does this mean, in terms of what will happen to the agreement?
a. No contractual obligations will arise;
it is as if nothing ever happened.
b. Skippy must honor the contract.
c. Skippy may honor the contract if he wishes, or may avoid his
obligations if he wishes.
d. none of the above
3. Skippy, who is 17, buys a TV for $1,000. On the way home, he drops it and breaks the picture tube. The tube will cost $500 to replace. He returns the TV to the store and demands a refund. In a majority of states, how much cash must the store return to Skippy?
a. $0
b. $500
c. $750
d. $1,000
4. Skippy, who is 17, buys a TV for $1,000. On the way home, he drops it and breaks the picture tube. The tube will cost $500 to replace. He returns the TV to the store and demands a refund. In a minority of states, how much cash must the store return to Skippy?
a. $0
b. $500
c. $750
d. $1,000
5. Which of the following 17-year-olds can form valid contracts and have no right to disaffirm contracts?
a. Allison, who ran away from home to work
in another state
b. Bill, who has been granted emancipation by a court
c. Carl, who lives with a legal guardian
d. both A and B
6. Ann is 17, and rents an apartment for two months for $500 total. The reasonable value of the apartment for that time is only $400, but Ann rents it anyway because it is near the store where she works. After signing the contract and paying the $500, Ann decides to disaffirm the contract. How much of her $500 is she entitled to?
a. $0
b. $250
c. $100
d. $500
7. Which of the following may be viewed as necessaries?
a. food
b. educational costs
c. jewelry
d. all of the above
8. Julie's parents are wealthy, and Julie's allowance is $100
per week. She buys a $200 sweater at Foley's. She is 14, and later
tries to disaffirm the contract. Who will ultimately be responsible
for the reasonable cost of the sweater?
a. Julie
b. Julie's parents
c. Foley's
d. none of the above
9. Raul is 16, and contracts to buy a car. What is the earliest he may ratify this contract and become bound by it?
a. immediately
b. after he makes the first payment
c. on his 18th birthday
d. on his 21st birthday
10. Alan buys a car when he is 17, and agrees to make monthly payments for two years. The two years pass, and Alan makes all the payments. Which of the following has taken place?
a. an express ratification
b. an implied ratification
c. no ratification
d. promissory estoppel
11. Alan buys a car when he is 17, and agrees to make monthly payments for two years. Alan turns 18, and makes two payments after his birthday. 10 payments remain before the contract is fulfilled. Under the reasoning of Fletcher v. Marshall, which of the following has taken place?
a. an express ratification
b. an implied ratification
c. no ratification
d. promissory estoppel
12. Alan buys a car when he is 17, and agrees to make monthly payments for two years. On his 18th birthday, he writes a letter to the car dealer renewing his promise to make all the payments. Which of the following has taken place?
a. an express ratification
b. an implied ratification
c. no ratification
d. promissory estoppel
13. Assume that in this case a car is not a necessary. Tom, a minor, buys a car by himself for $1,000. He makes no payments, and is allowed to drive the car home. He wrecks the car, returns it to the dealer, and disaffirms his contract. The damage is estimated at $500. If this state is like the majority of states, who must pay the car dealer and how much?
a. His parents must pay $1,000.
b. His parents must pay $500.
c. Tom must pay $500.
d. Neither Tom nor his parents must pay anything.
14. Jess is 15, and rents a Jet Ski. He signs a rental agreement agreeing to follow safety rules. Later, he gets very drunk and attempts to ride the Jet Ski which doing a handstand. He crashes into Morgan's boat, and injures him. To who will Jess be liable?
a. to the rental store for breach of contract
b. to Morgan for in tort
c. both A and B
d. none of the above
15. Which of the following contracts may not be disaffirmed by minors?
a. contracts to enlist in the military
b. marriage contracts
c. both A and B
d. Neither A or B--a minor may disaffirm any contract.
16. Assume that in this case a car is not a necessary. Tom, a minor, buys a car for $1,000. His father co-signs the contract. He makes no payments, and is allowed to drive the car home. He wrecks the car, returns it to the dealer, and disaffirms his contract. The damage is estimated at $500. If this state is like the majority of states, who must pay the car dealer and how much?
a. His parents must pay $1,000.
b. His parents must pay $500.
c. Tom must pay $500.
d. Neither Tom nor his parents must pay anything.
17. Which of the following persons is/are "intoxicated"?
a. Andy, who has 14 shots of tequila
b. Ben, who has smoked a 4-inch diameter "wonder-joint"
c. Carl, who has taken four prescription tranquilizers
d. all of the above
18. What is the most a person can possibly drink and still make a valid contract?
a. zero drinks
b. one drink
c. enough drinks to meet the legal definition of drunk in their
state
d. there is no absolute limit.
19. Annie voluntarily drinks 14 shots of tequila at a bar. She has no idea what is happening. At some point during the night, she signs a contract with Tom to buy Tom's car. What is the status of this contract?
a. valid
b. void
c. voidable
d. unenforceable
20. Which of the following is a court likely to consider in determining whether or not a person was "intoxicated"?
a. the person's opinion of how drunk they
were
b. a third party's opinion of how drunk a person appeared
c. both A and B
d. none of the above
21. Troy has been declared legally insane in the state of Idaho. One day, he escapes from a mental hospital and buys a Sega. What is the status of this contract?
a. valid
b. void
c. voidable
d. unenforceable
22. Troy is crazy, but has never been declared legally insane in the state of Idaho. One day, he buys a Sega. He has no appreciation of the purchase, a salesman just convinced him to buy the item. What is the status of this contract?
a. valid
b. void
c. voidable
d. unenforceable
23. Troy is crazy, but has never been declared legally insane in the state of Idaho. One day, he buys a Sega. He knows exactly what he is doing--he wants to go home and play "Mortal Combat." What is the status of this contract?
a. valid
b. void
c. voidable
d. unenforceable
24. Which of the following are aliens?
a. Andy, who was born in Germany and is
now a U.S. citizen
b. Benny, who was born in Portugal and is a legal resident of
the U.S.
c. Zortaks, who was born on Altair--4 and lives in Area 51 in
the Nevada desert.
d. both A and B
25. Which of the following aliens would have been able to enforce a contract in the U.S. in 1943, during the height of World War II?
a. a German citizen
b. a British citizen
c. both A and B
d. none of the above