Cengage Advantage Books Business Law Text And Exercises 7th Edition By Miller – Test Bank

TRUE/FALSE QUESTIONS

1. Contracts formed between parties that lack contractual capacity are usually unenforceable.

ANSWER: T PAGE: 142 TYPE: N
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

2. An “infant” is a legal term for a minor.

ANSWER: T PAGE: 142 TYPE: N
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

3. The age of majority in most states is eighteen years.

ANSWER: T PAGE: 142 TYPE: +
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

4. An adult may avoid any contract with a minor.

ANSWER: F PAGE: 142 TYPE: =
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

5. Contractual capacity refers to the legal ability to enter into a contract.

ANSWER: T PAGE: 142 TYPE: =
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

6. A minor may disaffirm a contract only if the subject matter is illegal.

ANSWER: F PAGE: 142 TYPE: =
BUSPROG: Reflective LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

7. A minor may enter into a contract for the sale of alcoholic beverages if the other contractual party is an adult.

ANSWER: F PAGE: 142 TYPE: N
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

8. In general, minors are personally liable for their contracts.

ANSWER: T PAGE: 142 TYPE: =
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

9. A minor’s right to disaffirm a contract terminates thirty days after the contract’s date.

ANSWER: F PAGE: 143 TYPE: +
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

10. If a minor disaffirms a contract, he or she must disaffirm the entire contract.

ANSWER: T PAGE: 143 TYPE: =
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal

11. Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

ANSWER: T PAGE: 143 TYPE: +
BUSPROG: Analytic LO: 11-1 BLOOM’S: Knowledge
DIF: Easy AICPA: BB-Legal