Question;Business Law Quiz with Answers;1) Which of the;following is NOT true?;a. A minor can still;disaffirm a contract for a reasonable time after reaching majority.;b. An adult cannot;disaffirm a contract made with a minor.;c. A minor must pay;the agreed price on a contract for necessaries.;d. What constitutes;a necessary varies over time and can differ from state to state.;2) Usury laws are;concerned with;a. taxes paid;b. interest charged;c. uses of the labor;force;d. contract purposes;3) Types of;contracts that are commonly invalidated include the following EXCEPT;a. immoral contracts;b. contracts in;restraint of trade;c. contracts that;impair family relations;d. contracts to;commit a tort;e. contracts which result;in competition with a valid preexisting business;4) Which of the;following is generally true about exculpatory clauses?;a. They are not;valid with respect to intentional acts.;b. The test is if;they are reasonable in time, scope, and geographic area.;c. They are usually;found to be invalid.;d. They are not;valid for ordinary negligence.;5) Which of the;following is NOT one of the needed elements of an unconscionable contract?;a. parties;possessing severely unequal bargaining power;b. the dominant;party?s unreasonable use of that bargaining power to obtain oppressive or;manifestly unfair terms;c. an unreasonably;short period of time for the oppressed party to perform;d. no reasonable;alternative for the oppressed party;6) Mike, who is 16;years old, buys a motorcycle from Cycle Sellers, Inc. Assume that Mike pays;$5,000 and that the fair value of the motorcycle at the time of purchase is;$4,500. Which of the following is true?;a. This is an;illegal contract because Mike is a minor.;b. This contract is;void because Mike is a minor.;c. Even if Mike;signs a statement as part of the contract that states, ?I agree not to disaf;firm this contract,? Mike may nonetheless disaffirm when he is 17 years old.;d. There was;probably undue influence involved with this contract since Mike is a minor and;the price charged was greater than the fair market value.;e. If a court;decides that the motorcycle is a necessary, Mike will be obligated to pay the;$5,000.;7) At age 16, Phil;bought a car from Acme Auto Co. for $2,500. Phil drove the car for about six;months, and then he had an accident. The damage to the auto was $1,500. In;addition, the value of the auto before the accident was only $2,000. The;accident was not Phil?s fault. Phil wishes to disaffirm the contract. Which of;the following best describes this situation?;a. Because the car;was damaged, Phil cannot disaffirm the contract.;b. Phil can;disaffirm the contract, but he can recover only $500 of his money.;c. Phil can;disaffirm the contract, but he can recover only $2,000 of his money.;d. Phil can;disaffirm the contract and recover the entire $2,500.;e. Phil can;disaffirm the contract, but he must first have the car repaired.;8) The courts have;very broad powers to enforce or not enforce certain types of contracts. Which;of the following statements best describes this power?;a. Contracts that;are contrary to public policy are well defined by statutes.;b. The determination;of what is unconscionable is very well established and follows very clear;standards.;c. Exculpatory;clauses and noncompete agreements sometimes violate public policy and sometimes;do not.;d. To be contrary to;public policy, the contract must violate a statute.;9) On your first spring;break, you go in a bar after reading a large sign outside saying, ?Beers $1.00;each all night long. If you can drink 30, they?re all free?we?ll pay for a;taxi.? You pay for your beers as you drink, and you manage to drink 30 beers.;The bar agrees that you drank 30 beers, but refuses to refund your money. You;sue the bar. Which is most likely true?;a. This contract is;voidable by the bar if you get so intoxicated while drinking the 30 beers that;you don?t comprehend the nature of what you are doing.;b. The sign is an;offer for a bilateral contract because both you and the bar must do something.;c. A court would;ignore this contract on the basis of illegality even if it does not violate a;specific statute.;d. There is no;consideration on your part if you don?t pay for the beer.;10) Gertrude wants;to buy a new car, but is short of money. She promises the salesperson that she;will grant him sexual favors for the next year if he will give her an;automobile. He agrees. She later changes her mind, and he seeks to enforce the;contract. How will a court most likely rule on the matter?;a. It is a valid;contract.;b. It is an illegal;contract in violation of public law.;c. It is a void;contract in violation of public policy.;d. It is a contract that may be voidable by;Gertrude.
Paper#59379 | Written in 18-Jul-2015Price : $22