Problem
1) Cheryl and her brother Harold are both minors and often cause trouble. Cheryl is a high school student who was elected homecoming queen and does part-time modeling to earn money for college. She has an important interview with a modeling agency and wants to make a good impression, so she withdraws $5,000 from her savings and buys a designer outfit and a fur coat for the interview. A week later, she returns the coat to the department store and says she would like her money back. The store is reluctant to take the items, and is claiming that the coat was not a necessary. Subsequently, the store owner heard that you took a business law course, and she wanted your advise on the issue at hand. The precise question that you were asked was: What is the best argument the store can make in order to reject the items and keep some, if not all of the money? Be specific, and DO NOT DISCUSS any issues not covered in our class.
2) Cheryl's brother Harold is in trouble as well. He decided to trade his 1985 truck for a new car at the local dealership. One week after driving the new car, Harold decides that he cannot afford the payments. Harold now wishes to disaffirm his purchase and get his old truck back. The dealer informs Harold that the truck has been sold. It turns our that, based on this experience with minors, the dealer was suspecting that Harold might change his mind, so he made a side deal and sold Harold's truck his friend, Slimmest Shady, with whom Harold regularly shares the inventory, if needed. Can Harold get the old truck back and disaffirm his contract with the dealer? Explain and analyze the relevant rule.