Question 1

What was the result in the Case Opener in which customers of Apple attempted to disaffirm purchases of game currency by their children?

Accepted Answer

The U.S. District Court for the Northern District of California denied Apple's motion to dismiss the lawsuit stating that no case law was provided to prove that Apple's Terms of Service served as a contract for all subsequent transactions.

Question 2

If a person's mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him,he has no capacity to enter into contracts; and any contract he attempts to enter into is void.

Accepted Answer

If a person has been adjudicated insane and has a guardian appointed, that person has no capacity to enter into contracts and any contract he does attempt to enter into is void.

Question 3

A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries.

Accepted Answer

Just as with contracts of minors and mentally incapacitated persons, the courts will enforce an intoxicated person's contract for necessaries for their reasonable value.

Question 4

Both a minor and the adult with whom the minor contracted may disaffirm a contract based upon the minor's lack of majority.

Accepted Answer

It is only the minor who has the right to disaffirm, never the adult with whom the minor entered into the agreement.

Question 5

As a general rule,parents are not liable for contracts entered into by their minor children.

Accepted Answer

As a general rule, parents are not liable for contracts entered into by their minor children.

Question 6

A contract overturned due to having illegal subject matter or for being illegal to perform is generally declared voidable.

Accepted Answer

A contract overturned for illegal subject matter or for being illegal to perform is generally declared void.

Question 7

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor,typically when the minor moves out of the parents' house and begins supporting himself or herself?

Accepted Answer

Emancipation occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself. Often the minor will petition the court for a declaration of emancipation.

Question 8

Which of the following was the result on appeal in King v.Riedl,the case in the text in which the plaintiffs claimed that the defendant lacked the right to proceed against them for sums allegedly owed because the contractor was not licensed as a residential home builder as required by state law?

Accepted Answer

The court ruled in favor of the plaintiffs on the basis that pursuant to a state statute, a residential home builder failing to maintain the required license was statutorily barred from bringing or maintaining an action to enforce the provisions of a contract for residential home building for more than $10,000.

Question 9

In most states a person is given full legal capacity to enter into contracts when he or she becomes ______ before reaching the age of majority.

Accepted Answer

In most states, a person is given full legal capacity to enter into contracts when he or she becomes emancipated before reaching the age of majority.

Question 10

Which of the following is an element of a legally binding contract?

Accepted Answer

Capacity is an element of a legally binding contract.

Question 11

In all states parents are responsible for the torts of their minor children.

Accepted Answer

In most states, minors, not their parents, are liable for a minor's personal torts.

Question 12

Today,married women have been removed from the category of those lacking contractual capacity,although in a few states their capacity to enter into certain kinds of contracts is still limited.

Accepted Answer

Historically, people with limited or no capacity included married women, minors, and insane persons. Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited.

Question 13

In the law when both parties are equally responsible for an illegal agreement,it is known as in pari delicto.

Accepted Answer

The legal principle of in pari delicto means both parties are equally responsible for the illegal agreement.

Question 14

All exculpatory clauses are unlawful.

Accepted Answer

While businesses closely linked to the public interest cannot enforce exculpatory clauses, not all such clauses are unlawful.

Question 15

Which of the following is some sort of mental or physical defect that prevents a person from being able to enter into a legally binding contract?

Accepted Answer

Incapacity, or incompetence as it is sometimes called, is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.

Question 16

Which of the following was the result on appeal in Eric Lucier and Karen Haley v.Angela and James Williams,Cambridge Associates LTD.,and Al Vasys,the case in the text in which,after finding significant problems with their roof,the plaintiffs claimed that provisions in a home inspection contract illegally limited the liability of the defendants?

Accepted Answer

The court found that the limitation of liability provision in the contract was unconscionable and violated the public policy of the state.

Question 17

A person who has legal ______ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and,therefore,will presumably be able to understand how to comply with the terms of the agreement.

Accepted Answer

A person who has legal capacity has the mental ability to understand his or her rights and obligations under a contract and therefore presumably to comply with the terms.

Question 18

What did the U.S.Supreme Court rule in Buckeye Check Cashing Inc.,v.Cardegnaet,the case in the text involving whether the court or the arbitrator should determine decide the issues of a case when illegality in relation to a contract is claimed?

Accepted Answer

The Court concluded that when an agreement as a whole, but not specifically its arbitration provisions, is challenged, the arbitration provisions are enforceable apart from the remainder of the contract, and the challenge to the legality of the contract itself should therefore be considered by an arbitrator, not a court.

Question 19

In most cases,when a minor marries,she or he is considered ____.

Accepted Answer

In most cases, when a minor marries, she or he is considered emancipated.

Question 20

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Accepted Answer

For purposes of determining capacity, intoxicated persons include those under the influence of alcohol or drugs.

Quiz 16: Capacity and Illegality