Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  Jolie.
B)  Jolie's medical insurance company.
C)  Keaton.
D)  no one.E) B) and C)
F) None of the above

Question 3

It is easy to prove that an intoxicated person's judgment was so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

Accepted Answer

A) True 
 B)False

Question 4

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can

Accepted Answer

A)  do nothing with respect to the policy.
B)  enforce the policy or recover the amount of the premiums paid.
C)  only enforce the policy.
D)  only recover the amount of the premiums paid.E) A) and D)
F) A) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

All adhesion contracts are unconscionable.

Accepted Answer

A) True 
 B)False  False

Question 8

All states' laws permit minors to disaffirm contracts.

Accepted Answer

A) True 
 B)False

Question 9

Fact Pattern 14-B1 (Questions B14-B15 apply) 
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.The clause is most likely

Accepted Answer

A)  enforceable as a matter of public policy.
B)  enforceable if either party is considered to be a business for essential services.
C)  enforceable if the lease also involves residential property.
D)  unenforceable.E) B) and D)
F) All of the above

Question 10

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.

Accepted Answer

A) True 
 B)False  True

Question 11

For business purposes,an adult may petition a court to treat minors as adults.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Duffy and Elbert agree to hijack a truck carrying a load of almonds.Duffy later refuses to go through with the crime.Elbert can

Accepted Answer

A)  enforce the agreement.
B)  obtain damages from Duffy in the amount of Duffy's probable share of the illegal profits.
C)  recover in quasi contract for the loss of his share of the illegal profits.
D)  not enforce the agreement or recover damages.E) C) and D)
F) A) and B)

Question 15

Fact Pattern 14-B1 (Questions B14-B15 apply) 
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

Accepted Answer

A)  a covenant not to compete.
B)  an adhesion contract.
C)  an exculpatory clause.
D)  an illusory promise.E) B) and C)
F) None of the above

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  if it is deemed a necessary.
B)  if it is deemed a luxury.
C)  if it is deemed unique.
D)  under no circumstances.E) A) and D)
F) A) and B)

Question 19

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

Accepted Answer

A)  nothing.
B)  the reasonable value of the goods.
C)  the sales price of the goods.
D)  the ultimate worth of the goods.E) All of the above
F) A) and D)

Question 20

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

Accepted Answer

A)  collect the commission if it has not been paid.
B)  keep the commission if it has already been paid.
C)  foreclose on the property to obtain any unpaid amount.
D)  not collect the commission,keep it,or foreclose on the property.E) B) and C)
F) None of the above D

Exam 14: Capacity and Legality

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

Correct Answer
verified

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

Correct Answer
verified

It is easy to prove that an intoxicated person's judgment was so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

Correct Answer
verified

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

All adhesion contracts are unconscionable.

Correct Answer
verified
False

All states' laws permit minors to disaffirm contracts.

Correct Answer
verified

Correct Answer
verified

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.

Correct Answer
verified
True

For business purposes,an adult may petition a court to treat minors as adults.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Duffy and Elbert agree to hijack a truck carrying a load of almonds.Duffy later refuses to go through with the crime.Elbert can

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
D

Exam 14: Capacity and Legality

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

It is easy to prove that an intoxicated person's judgment was so severely impaired that he or she could not comprehend the legal consequences of entering into a contract.

Correct AnswerverifiedShow Answer

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All adhesion contracts are unconscionable.

Correct AnswerverifiedFalse

All states' laws permit minors to disaffirm contracts.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedTrue

For business purposes,an adult may petition a court to treat minors as adults.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Duffy and Elbert agree to hijack a truck carrying a load of almonds.Duffy later refuses to go through with the crime.Elbert can

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedD

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False

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True

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D