Your business, "And They're Off" Go-Kart Emporium, has recently endured some set- backs. Although you have been sued and had some tax issues, all has been settled and you are now back on track. (Yes, pun intended.) As a matter of fact, you have some additional cash on hand and recently saw an antique go-kart for sale on E-Bay. After checking out the photo and all of the information, you decide to buy it as a decorative focal point of advertisement in the entrance way of your business. The owner of the go-kart is local, so you go to their house to meet with them and discuss the purchase of the antique go-kart. You notice that the person who answers the door appears a bit young. In speaking with him, he notes that he is a college student looking to sell the go-kart that his grandfather left him in his will to cover an upcoming tuition payment. The young man shows you the appropriate papers demonstrating that he is the owner and you settle on what you both feel is a fair price.

You bring the go-kart back to your business and promptly display it in the entrance, in the hopes that it will spark some attention. Two months after the purchase, you get a call from the former owner. As it turns out, although he is in college, he was only 17 years old at the time of the sale. He tells you he skipped 4th grade, which explains how he is so young, and tells you he just turned 18 a week ago. It seems his grandmother saw the go-kart in front of your business and became very upset because she loved the go-kart and wanted it to stay in the family. He tells you that he is currently taking Business Law at school and notes that, because of his age at the time of the sale, he was not competent to enter the contract and he wants it back. He said he still has the money you gave him, as his grandmother paid his tuition in the hopes that her grandson could get back their beloved go-kart.

Required Discussion Points:

Note: Create your Main Post response in accordance with the following four questions. Use each question as the title to each section of your response. Make sure to address all of the relevant legal principles and factual issues pertaining to each question.

1. Do you have to return the go-kart which is now attracting new customers? Does the fact that the seller has now turned the age of majority change anything? Identify, define and discuss any relevant legal rules pertaining to capacity of a minor and any power they may have to cancel the contract.

2. Also, what if any duty does the minor/seller still have to you, the adult purchaser? Define and discuss any relevant legal rules pertaining the minor's obligations.

3. Instead of the above scenario, what if you had found out that the seller was a minor after you had purchased the go-kart. Could you have called up the seller and cancelled the contract and asked for your money back, despite the fact that he did not want to cancel the deal? Why or why not? Identify, define and discuss any relevant legal rules in this regard.

4. Finally, what should you have done to avoid this problem at the point you purchased the go-kart and completed the contract? How could you have protected yourself?