Chapter 13, Exam III

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Don enters into a contract with Edie, who does not have contractual capacity. The law will permit Don to enforce the contract only if Edie

elects not to avoid the contract

Boyd is a minor. As a minor, Boyd has the capacity to enter into

a valid contract

Yvon and Zack are minors who marry each other. Their minority status may be terminated under the laws of

some states

Cary is fifteen. In most states, Cary would be considered a minor because she is under the age of

eighteen

Ken relinquishes the right to his son Lee's control, care, custody, and earnings. This act is

an emancipation

Nina, a seventeen-year-old, signs a contract to sell her car to OK Used Cars. Nina receives a better offer the next day from Perfect Pre-Owned Cars, Inc., and accepts the new offer. Nina is

not liable to OK becuase the sale of the car disaffirmed their deal

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

void as a matter of law

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 without liability

Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract

does not change the fact that Phil is bound by the contract

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 return the car but must may for the damage

Cray returns a digital music player that he bought from Discount City, which refunds the price. Their exchange involves

restitution

Ann, an emergency medical technician, renders medical care to Brad, a minor. Under the ruling og the court in Case 13.1, Yale Diagnostic Radiology v. Estate of Harun, Ann may recover the cost from

Brad or Brad's parent

Elmo, a minor, misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos. Ordinarily, Elmo can disaffirm the contract

under any circumstances

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

$1,000

Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's

the resonable value of groceries

Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use it facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is

a ratification

Max, a minor subject to his parents' care and control, signs a contract to rent an apartment from Noel for one year. Before the end of the term, Max moves out. Noel sues for the rent for the rest of the term. Max can

disaffirm the contract and avoid liability for the rent

Intoxicated, Clio agrees to sell her restaurant, Diner's Cafe, to Evan for half of its real market value. This deal is most likely void if

Evan fruadulently induced Clio to become intoxicated

Curt, a doctor, renders medical care to Dora, a minor. According to the reasoning of the court in Case 13.1 Yale Diagnostic Radiology v. Estate of Harun, a contract between Curt and Dora is

implied in law

Opie enters into a contract with Pia. Later, Opie is adjudged mentally incompetent and Quint is appinted Opie's gaurdian. Raye, Opie's daughter, attempts to void Opie's contract with Pia on the ground of Opie's incompetency. The contract is

enforceable only if Opie does not attempt to disaffirm it

Delia enters into, and fails to disaffirm soon after reaching the age of majority, a contract with Electronic Stores, Inc. (ESI) Later Delia attempts to disaffirm the contract. ESI files a suit against her. The court will most likely consider the contract ratified if it is

executed

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian. Later, without Inez's knowledge, Huck signs a contract to sell his farm to Kyle for its real market value. The contract is

void

Nora signs a contract to buy a car just before reaching the age of majority. After reaching the age of majority, Nora does not take posession or make payments. Most courts would hold that she had

disaffirmed the contract

Jock and Kyla decide to wager, in violation of a state statute, on the outcome of a football game. They each deposit money with Len, who agrees to pay the winner of the bet. Before the game begins. Kyla tells Len that she changed her mind about the bet. Kyla can recover

the amount of her bet only

On Tad's eighteenth birthday he decides that he no longer wants to keep a car he bought from U-Pick Autos, Inc., when he was seventeen. His right to disaffirm the deal with depend on

whether Tad acts within a reasonable period of time

Lara is a real estate broker licensed only in Minnesota. Lara concludes a sale in North Dakota. She can successfully sue to

neither collect the commission nor keep it

Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is

enforceable

Jon agrees to sell his K9 sports equipment store to Lacy. As part of the sale, Jon promises never to open a similiar, competing store anywhere. Jon's promise is most likely

invalid because of the unreasonable terms of area and time

Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is

voidable if the other party does not realize that Fay is incompetent

U-Can-Own-It Corporation sells appliances to less educated consumers, including Viv, on installment plans. U-Can-Own-It files a suit against Viv when she stops making payments. Viv vlaims that the deal is unconscionable. The court will most likely consider

the parties' relative bargaining power.

Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum. First State has

violated the usury laws

A contract between Eppie and Fab to lease real property contains an exculpatory clause. This clause is

generally unenforceable

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

no one

Dina signs a contract with Ellen to kill Frank. Dina pays Ellen but she refuses to perform. Dina can

do nothing with respect to the contract

Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is

not enforceable

Boz runs an illegal gambling business and pays Colin, a law enforcement officer, not to interfere. The payments are discovered. Boz and Colin are sent to prison. With respect to the amount of the payments, Boz can recover

none of it

Ralph signs a covenant to to compete with his employer, Super Sales Company. A court decides that the covenant is overly restrictive. The court will most likely

reform its terms to prevent any undue burdens

National Insurance Company violates a state statue when selling an insurance policy to Opal. The policy may be enforced by

Opal only

Odell owns Payroll Company, a bookkeeping service losing market share to Quik Qork, Inc. Odell pays Remy $5,000 to steal a list of Quik's clients, to whom Odell will aggressively market Payroll's services. This deal is

void

Through fradulent 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

enforce the contract or recover the payment

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