CHAPTER 9
Competent Parties
MULTIPLE-CHOICE QUESTIONS
Circle the letter of the best answer.
1.Kavik has been declared legally insane by a court. Her purchase of an electric corn popper for $43.95 is
a.voidable by Kavik.
b.void.
c.valid if the price of the corn popper is reasonable.
d.valid if the store declares it valid.
2.Two months before reaching the age of majority, Marcus bought a radar detector for $129.95. She paid cash. Nine months later, she sought to avoid the agreement. Marcus’s delay in avoiding the agreement
a.made her liable to the merchant for fraud.
b.did not prevent her from avoiding the agreement.
c.most likely constituted a ratification of the agreement.
d.entitled her to only a partial refund of the purchase price.
3.A minor who disaffirms an executed agreement with an adult
a.is bound for life.
b.ends the agreement with no further obligation.
c.must inform the adult orally.
d.must return any consideration received from the adult.
4.An emancipated minor who purchases a prescription in a drugstore is required to pay
a.any amount the druggist wants to charge.
b.the reasonable value of the prescription.
c.an amount decided on by the minor.
d.the price set by the manufacturer.
5.Lewis, a minor, sold her indoor exerciser to Francis, an adult. Francis then resold the exerciser to Beacon, a good-faith purchaser. Beacon’s title is
a.voidable.
b.valid.
c.void.
d.unenforceable.
6.Agreements of people who suffer from periods of temporary insanity but who have not been declared legally insane by a court can be disaffirmed by
a.the temporarily insane person in a period of normalcy.
b.the temporarily insane person at any time.
c.the other party to the agreement.
d.either party.
7.Cigarette lighters, jewelry, and electronic games are classified legally as
a.necessaries.
b.luxury items.
c.adult items.
d.entertainment items.
8.Thompson, a minor, bought headphones for her stereo from The Stereo Store. This agreement is
a.voidable by The Stereo Store only.
b.voidable by either party.
c.voidable by Thompson only.
d.binding on both parties.
9.An emancipated minor can avoid a contract to pay for
a.having a tooth filled by a dentist.
b.jeans and shirts that are part of a school wardrobe.
c.room and board at a private roominghouse near the private school he is attending.
d.archery equipment used in sports tournaments.
10.An emancipated minor’s contracts are voidable unless they are
a.for luxury items.
b.for necessaries.
c.made with other minors.
d.made with adults.
11.A person who enters into a written contract while intoxicated and does not understand the consequences of the agreement
a.still is bound by the written contract.
b.may avoid the contract under certain conditions on becoming sober.
c.can do nothing.
d.waives all rights in that agreement.
12.The best illustration of a legally competent party is
a.a person under the influence of alcohol.
b.a 14-year-old.
c.a 65-year-old.
d.a person who is legally insane.