Question 1

If an illegal contract is executory,either party can enforce it.

Accepted Answer

A) True 
 B)False

Question 2

Curt,a doctor,renders medical care to Dora,a minor.Happy for a successful outcome,Dora buys and sends a gift to Curt,and hires the band Elation to perform at her next birthday celebration.Most likely to be considered a necessary is

Accepted Answer

A)  the medical care.
B)  the thank-you gift.
C)  the band.
D)  none of the choices.E) All of the above
F) B) and C)

Question 3

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Accepted Answer

A) True 
 B)False

Question 4

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Accepted Answer

A)  valid but may be disaffirmed.
B)  valid but may not be disaffirmed.
C)  void as a matter of law.
D)  void unless it is also signed by Edie,the manager of Dine & Drink.E) B) and D)
F) B) and C)

Question 5

Jolie signs a contract with Keaton,an unlicensed physician,to perform plastic surgery-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 D)
F) B) and C)

Question 6

Baby Products,Inc.,hires Chewy to develop and implement an e-commerce strategy for marketing Baby's products.Chewy signs a contract that includes a clause prohibiting him from competing with Baby during and after the employment.Before the strategy is implemented,Chewy resigns from Baby's employ and opens a business to compete with Baby.In Baby's suit against Chewy,to determine whether he may compete with Baby,what is the most important factor the court should consider Is the clause likely to be enforced Explain.

Accepted Answer

In determining whether Chewy may compete...

Question 7

Parents are required by law to provide necessaries for their minor children.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  an unreasonable restraint of trade like all covenants not to compete.
B)  unreasonable in terms of geographic area and time.
C)  unreasonable in terms of Kay's "goodwill" and "reputation."
D)  valid and enforceable.E) B) and C)
F) C) and D)

Question 9

Airway International,Inc.,is a commercial passenger airline.Airway includes on its tickets a clause that states the airline is not liable for any injury to,or the death of,any passenger caused by its,or its employees',negligence.An Airway flight from Boston to New York crashes into Long Island sound,resulting in the deaths of all passengers.The cause of the accident is found to be due to Airway's negligence.Based on the clause on its tickets,can Airway avoid liability

Accepted Answer

Airway cannot avoid liability for the de...

Question 10

Jacquie signs a contract to buy a car just before reaching the age of majority.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

Accepted Answer

A)  disaffirmance.
B)  emancipation.
C)  ratification.
D)  rescission.E) A) and B)
F) A) and C)

Question 11

An unconscionable contract is a contract entered into unconsciously.

Accepted Answer

A) True 
 B)False

Question 12

First National Bank signs an agreement not to compete with City Bank that will bar City Bank from continuing to operate in the state in which both banks do almost all of their business.The agreement is likely

Accepted Answer

A)  an unreasonable restraint of trade.
B)  enforceable.
C)  enforceable if it is ancillary to an agreement by the First National Bank to purchase all of the assets of the City Bank.
D)  none of the choices.E) A) and C)
F) C) and D)

Exam 12: Capacity and Legality

If an illegal contract is executory,either party can enforce it.

Correct Answer
verified

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Correct Answer
verified

An unconscionable contract is a contract entered into unconsciously.

Correct Answer
verified

First National Bank signs an agreement not to compete with City Bank that will bar City Bank from continuing to operate in the state in which both banks do almost all of their business.The agreement is likely

Correct Answer
verified

Parents are required by law to provide necessaries for their minor children.

Correct Answer
verified

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

Correct Answer
verified

Jacquie signs a contract to buy a car just before reaching the age of majority.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

Correct Answer
verified

Curt,a doctor,renders medical care to Dora,a minor.Happy for a successful outcome,Dora buys and sends a gift to Curt,and hires the band Elation to perform at her next birthday celebration.Most likely to be considered a necessary is

Correct Answer
verified

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Correct Answer
verified

Correct Answer
verified
Airway cannot avoid liability for the de...
View Answer

Correct Answer
verified
In determining whether Chewy may compete...
View Answer

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

Correct Answer
verified

Exam 12: Capacity and Legality

If an illegal contract is executory,either party can enforce it.

Correct AnswerverifiedShow Answer

Contractual capacity includes the financial ability to pay for the benefits of a contract.

Correct AnswerverifiedShow Answer

An unconscionable contract is a contract entered into unconsciously.

Correct AnswerverifiedShow Answer

First National Bank signs an agreement not to compete with City Bank that will bar City Bank from continuing to operate in the state in which both banks do almost all of their business.The agreement is likely

Correct AnswerverifiedShow Answer

Parents are required by law to provide necessaries for their minor children.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Jacquie signs a contract to buy a car just before reaching the age of majority.After reaching the age of majority,Jacquie does not take possession or make payments.Most courts would hold,with respect to the contract,that this is

Correct AnswerverifiedShow Answer

Curt,a doctor,renders medical care to Dora,a minor.Happy for a successful outcome,Dora buys and sends a gift to Curt,and hires the band Elation to perform at her next birthday celebration.Most likely to be considered a necessary is

Correct AnswerverifiedShow Answer

Chris,a minor,signs a contract to buy alcoholic beverages for Dine & Drink,his parents' restaurant.The contract is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAirway cannot avoid liability for the de...View AnswerShow Answer

Correct AnswerverifiedIn determining whether Chewy may compete...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Airway cannot avoid liability for the de...
View Answer

Correct Answer
verified
In determining whether Chewy may compete...
View Answer

Correct Answer
verified