(True/False)

13. Today, threats to economical interests can result in a claim of duress.

14. In general, the identity, existence, quality, and value of an item are not "basic assumptions.''

15. A debtor's offer to settle a $25,000 debt for $1000 on a take it or leave it basis with knowledge that the creditor is in extreme financial trouble, is not economic duress.

16. All persuasion contracts between parties in a fiduciary relationship, are automatically undue influence, and therefore unenforceable.

17. As a general rule, statements of opinion regarding quality or value are not grounds for rescission.

18. Once someone has been declared mentally incompetent by a court, any contracts they later enter into are void.

19. In general, after disaffirming a contract a minor must return any consideration still in the minor's possession.

20. A minor may not enter into a contract.

21. A minor, after reaching majority, can disaffirm a contract at any time.

22. Little Dave, age 15, bought some toy drums from a music store. A week later, Little Dave got tired of playing the drums so he called the store to disaffirm. Which of the following is true?

- Little Dave can disaffirm and can keep the drums.

- Little Dave can disaffirm but must return the drums.

-Little Dave cannot disaffirm because he has already played the drums.

-Little Dave cannot disaffirm because he is a minor.

23. An adult may disaffirm a contract:

- because of their mental impairment.

- if he or she enters into a contract with a minor.

- All of these answers.

- if he or she enters into a contract with an intoxicated individual.

(True/ False)

24. A fully emancipated minor cannot disaffirm a contract.

25. Ratification requires a specific and detailed letter indicating acceptance of the contract.

26. Food, clothing and shelter are always "necessaries."

27. If the only purpose of a contract is to restrain competition, the contract violates public policy and is illegal.

28. Exculpatory clauses are never enforceable.

29. The only time a minor can disaffirm a contract is after reaching the age of majority.

30. Normally an illegal contract is:

- Unenforceable

- Unconscionable

- None of these answers

- Voidable

31. Exculpatory clauses:

- can relieve a party from liability for wrongdoing no matter what the reason.

- can never relieve a party from liability for any wrongdoing greater than negligence.

- are always illegal.

- are always enforced because of freedom to contract.

32. Covenants (agreements) not to compete:

- must have, at a minimum, reasonable limitations.

- are always enforced against individuals and businesses because they serve an important economic function.

- are never enforced against individuals.

- are always enforced against businesses.

33. (true/false) While potentially enforceable, contracts that limit competition are disfavored by courts.

34. A person who is older than the age of majority may disaffirm a contract if:

- The other party is a minor who lied about his age.

- None of these answers

- The other party is an emancipated minor.

- The contract is for necessaries.

(True/False)

35. Both Regulatory and Revenue raising licensing statutes are designed to protect the public.

36. A minor normally is permitted to disaffirm a contract for the purchase of necessaries but remains liable for the reasonable value of the goods.

37. A person seeking to rescind a contract based on intoxication needs to show that he or she was so intoxicated as to fail to comprehend the legal consequences of entering into the contract and the other person was aware of his intoxication.

38. Stanley, a minor, goes to a jewelry store to buy an expensive present. The store clerk asked Stanley if he was 18. Stanley lied and said he was 23. The clerk sold the jewelry to Stanley. Stanley later wants to disaffirm. Under modern law, it doesn't matter what state the store is located, Stanley can disaffirm the contract.

39. If the purpose of a licensing statute is to raise revenue, a contract entered into with an unlicensed professional normally will still be enforced.

40. Statements not to compete are never enforced because they are unreasonable restrains on trade.

41. An agreement between two businesses whose sole purpose is not to compete with each other will generally not be enforced.

42. A covenant (an agreement) not to compete will generally be enforced if it is reasonable with respect to duration, scope, and geographical area.

43. A covenant not to compete that is part of an employment contract and is reasonable with respect to time, place and scope, will generally be enforced.

44. An exculpatory clause in a gym membership contract is never enforceable.

45. Shelley celebrates her eighteenth birthday and decides that she no longer wishes to keep a car that she bought when she was seventeen. Her right to disaffirm will depend on whether:

- the other party wants to go ahead with the contract or not

- the car is in good condition

- None of these answers

- she acts within a reasonable period of time after reaching the age of majority

46. (True/False) A liquidated debt is a debt where there is a good faith dispute as to the existence or amount of the debt.

47. (True/False) Promising to do something you already had a duty to do, is not consideration.

48. Ken, an unmarried seventeen-year-old, signs a contract to sell his car to the Regal Used Car Co. Ken receives a better offer the next day from another car dealership and accepts the new offer. Ken is :

- liable on the contract with Regal and must sell it a car of comparable value

- liable on the contract with Regal and must sell it his car

- None of these answers

- not liable to Regal and does not have to sell them his car

49. Joe, a minor, is living at home with his parents, but signs a lease with a landlord to rent an apartment. Joe can:

- disaffirm the contract because his parents can be held liable for the lease.

- not disaffirm the contract because the apartment is a necessary

- not disaffirm the contract because he indicated an intent to live on his own

- disaffirm the contract

50. (True/ Flase) Max purchases a motorcycle while still a minor and continues to maintain it and operate it for six months after reaching majority. Most courts would consider this action an implied ratification.