Daniel Dimaggio is a minor. As a minor, Daniel Dimaggio

	a.	has the capacity to enter into a valid contract.
	b.	is not usually legally bound by a contract.
	c.	has the right to avoid liability under a valid contract.
	d.	all of the choices.

2 points

QUESTION 2

Kevin O'Leary and DamonJohn own businesses that are right next to each other. Each business also has its own parking lot. Kevin offers Damon a discount on purchases from Kevin'sbusiness if Damon agrees to not tow the cars of Kevin'scustomers who park in Damon's lot. Damon'sforbearance from towing the cars of Kevin'scustomers who park in Damon's lot is legally sufficient consideration

	a.	because it is a promise of something of value.
	b.	under no circumstances.
	c.	only if Kevin's customers park in Damon's lot.
	d.	only if Damon's customers cannot park in his lot because it is full.

2 points

QUESTION 3

John Nash is mentally incompetent, but no court order has indicated that fact, and no court has appointeda guardianon his behalf.Any contract John Nashenters into is

	a.	voidable if the other party does not realize that John Nashis incompetent.
	b.	voidable if John Nashhas a lucid interval at the time of contracting.
	c.	void if John Nashlacks the capacity to comprehend the consequences.
	d.	unavoidable.

2 points

QUESTION 4

Chevron Incorporated contracts withBP Corporation., In the contract Chevron agrees to provide BP Corp with oil from Venezuela. Without giving any caution or warning, the Govt. of Venezuela commandeersand nationalizes the oil industry. Chevron can still obtain the oil, but only at a premium cost. On BP'S behalf, BP CEO Bernard Looneyagreesto pay the premium cost but later files a suit to recover the difference. The court will most likely rule that

	a.	Chevron engaged in extortion or the so-called holdup game.
	b.	a change in government is a common risk which mustordinarily be assumed in business.
	c.	an unforeseen difficulty supported the contract modification.
	d.	Chevron had a preexisting duty to supply the goods at the initial price.

2 points

QUESTION 5

DakPrescott tells Jerry Jones that he will pay him $500 to haul trimmed tree limbs and other lawn debris from his property. Jerry Jones'sacceptance is complete

	a.	once he offers to perform the job for $600.
	b.	only after he hauls away the debris.
	c.	when he hears the offer.
	d.	as soon as he says he will do the job.

2 points

QUESTION 6

Thomas Crapper promises to make a payment of $600 toPlumbing Pros.for the installation of a sump pump that will remove water from his storage facility. Plumbing Pros agrees and completes the installation. The installation

	a.	is the consideration that creates Thomas' obligation to pay Plumbing Pros.
	b.	imposes no obligation on Thomas unless he is satisfied with the job.
	c.	is not sufficient consideration because it is not goods or money.
	d.	imposes a moral obligation on Thomas to pay Plumbing Pros.

2 points

QUESTION 7

Scottie Pippen and Michael Jordan make a wageron the results of a football game, which violatesstate law. They both hand the money they wagered to Dennis Rodman, who agrees to pay the winner of the bet. Before the game begins, Jordantells Rodman that he has changed his mind about the wager. Jordancan recover

	a.	nothing.
	b.	the amount of his bet only.
	c.	the amount of his bet and the amount of Pippen's bet.
	d.	the amount of his bet minus Rodman's expenses.

2 points

QUESTION 8

TikTok, a video-sharing social networking service, who does not have many competitors, forces its consumers to enter into agreements with unconscionable terms and clauses. If TikTok'sconsumers do not enter into these agreements, TicTokwill not dobusiness with them. TikTokcan normally obtain a court order to enforce

	a.	an exculpatory clause.
	b.	an adhesion contract.
	c.	a covenant not to compete.
	d.	none of the choices.

2 points

QUESTION 9

In most states, when a person turns eighteen, he or she has reached

	a.	the age of competence.
	b.	the age of infancy.
	c.	the age of majority.
	d.	the age of ratification.

2 points

QUESTION 10

Rap artist Tekashi6ix9ineenters into an agreement with RocNation, his record label, where he signs a covenant not to compete. A Judge finds covenant to be overly restrictive. The Judge will likely

	a.	refuse to enforce it unless RocNation pays additional consideration.
	b.	enforce it as written so as not to undercut the freedom of contract.
	c.	enforce it but evaluate its effects over time.
	d.	reform its terms to prevent any undue burden.