Question 1. Ed is fifteen. In most states, Ed would be considered a minor because he is under the age of
sixteen.
seventeen.
eighteen.
twenty-one.
Question 2. Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack disaffirms the contract, he can most likely recover
$500.
$1,000.
$1,500.
nothing.
Question 3. Adam, a seventeen-year-old, signs a contract to sell his car to Best Used Cars. Adam receives a better offer the next day from Cars & Trucks, Inc., and accepts the new offer. Adam is
liable to Best and must sell it a car of comparable value.
liable to Best and must sell it his car.
not liable to Best because he is a minor.
not liable to Best because the sale of the car disaffirmed their deal.
Question 4. Elle, a minor acting on her own, signs a contract to buy a horse from Field Equine Ranch. Later, Elle disaffirms the deal. Liability most likely rests with
Elle and her parents.
Elle only.
Elle's parents only.
neither Elle nor her parents.
Question 5. Eve works for Fresh Produce Corporation (FPC) without special training, trade secrets, confidential information, or customer lists. A covenant not to compete restricts Eve, on leaving FPC's employ, from working for an FPC competitor for one year in ten states, including several in which FPC does not do business. Under the ruling of the court in Moore v. Midwest Distribution, Inc (Links to an external site.)., this covenant is most likely
enforceable because covenants not to compete are always enforceable when accompanying an employment agreement.
enforceable because it reasonably protects FPC's legitimate business interest.
unenforceable because covenants not to compete are never enforceable when accompanying an employment agreement.
unenforceable because it does not reasonably protect FPC's legitimate business interest.
Question 6. Jill, a minor, is living at home with her parents, but signs a lease with a landlord to rent an apartment. Jill can
disaffirm the lease because her parents can be held liable for it.
disaffirm the lease without liability.
not disaffirm the lease because an apartment is a "necessary."
not disaffirm the lease if she intended to live on her own.
Question 7. A court adjudicates Holly mentally incompetent and appoints a guardian. Holly subsequently signs a contract to sell her house. The contract is
enforceable if Holly comprehended the consequences.
enforceable if Holly knew she was entering into a contract.
enforceable if the house was entirely paid for.
void.
Question 8. Through fraudulent means, Fred induces Gail to sign a contract to invest with him the profits from High Styles, her clothing store. When Gail learns the truth, she may
do nothing with respect to the contract.
enforce the contract only.
enforce the contract or recover the money paid.
recover the money paid only.
Question 9. Ann, an emergency medical technician, renders medical care to Brad, a minor. Under the ruling of the court Yale Diagnostic Radiology v. Estate of Harun (Links to an external site.), Ann may recover the cost from
Brad only.
Brad or Brad's parent.
Brad's parent only.
no one.
Question 10. Dina signs a contract with Ellen to kill Frank. Ellen pays Dina but she refuses to perform. Ellen can
do nothing with respect to the contract.
enforce the contract only.
enforce the contract or recover the money paid.
recover the money paid only.
Question 11. A contract between Kim and Larry to lease real property contains an exculpatory clause. This clause is
enforceable as a matter of public policy.
enforceable if either party is in a business important to the public.
enforceable if the lease involves residential property.
generally unenforceable.
Question 12. National Insurance Company violates a statute when selling an insurance policy to Opal. The policy may be enforced by
National Insurance only.
National Insurance or Opal.
no one.
Opal only.
Question 13. Rita, a minor, signs a contract to buy a sport utility vehicle (SUV) by misrepresenting her age to be twenty-one. In most states, Rita may
disaffirm the contract.
disaffirm the contract only if she first makes full payment.
disaffirm the contract only if she returns the SUV in original condition.
not disaffirm the contract.
Question 14. Gary, a minor, buys a car from Hot Cars, Inc., in a state in which a duty of restitution is imposed. After wrecking the car, Gary wants to return it. Gary
can keep the car without paying for it or the damage.
cannot return the car unless it can be fully repaired.
can return the car but must pay for the damage.
can return the car without paying for the damage.
Question 15. Allen and Beth decide to wager, in violation of a state statute, on the outcome of a baseball game. They each deposit money with Cory, who agrees to pay the winner of the bet. Before the game begins, Beth tells Cory that she has changed her mind about the bet.
Beth can recover
the amount of her bet and the amount of Adam's bet.
the amount of her bet minus Cory's expenses.
the amount of her bet only.
nothing.
Question 16. Lara is a real estate broker licensed only in Minnesota. Lara concludes a sale in North Dakota. She can successfully sue to
collect the commission only.
collect the commission or keep it if it has already been paid.
keep the commission if it has already been paid but not to collect it.
neither collect the commission nor keep it.
Question 17. While a minor, Jason buys a car that he continues to use and keep in repair after reaching the age of majority. Jason has
disaffirmed the contract.
ratified the contract.
rejected the contract.
rescinded the contract.
Question 18. Nick represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pat and Nick by which Nick agrees to build a warehouse for Pat in Ohio is
enforceable only if Pat does not object after learning of Nick's status.
enforceable only if Pat knows that Nick is unlicensed.
enforceable only if the outcome is successful.
not enforceable.
Question 19. Bob runs an illegal business and pays Carl, a law enforcement officer, not to interfere. The payments are discovered. Bob and Carl are sent to prison. Bob can successfully sue Carl for the return of
none of the money.
only the money paid to Carl that Carl has not spent.
only the money paid to Carl that Carl has spent.
all of the money paid to Carl.
Question 20. John agrees to sell his sports equipment store to Kay and, as part of the sale, promises not to open a similar store in the United States for twenty years. John's promise is
an unreasonable restraint of trade like all covenants not to compete.
unreasonable in terms of geographic area and time.
unreasonable in terms of Kay's "goodwill" and "reputation."
valid and enforceable.