SOLVED

[Motorcycle crash] Cassandra, who would be turning 18 in two weeks, wanted to purchase a motorcycle at Hal’s Cycles. Hal explained she could pay monthly installments through a financing agreement, and that he needed an ID to verify she was at least 18 years old. Cassandra, who strongly resembled her older sister Alana, handed Alana’s drivers’ license to Hal, but Hal did not notice the license had the wrong name. The next day, when cruising in her new motorcycle, Cassandra crashed into Jonah, who was injured in the collision. The next month, Cassandra received a bill for the first installment of the motorcycle. Her parents also received a notice that they were being sued by Jonah because of Cassandra’s collision. Realizing her parents would be upset that she purchased a motorcycle, Cassandra went to Hal to return the broken motorcycle and tell him she was a minor and she’s not responsible for any payments under the financing agreement. 71) If, after her eighteenth birthday, Cassandra had paid the monthly payment on the financing agreement, would she still have the right to disaffirm the contract? A) No, because her actions do not constitute a valid ratification. B) Yes, as long as the disaffirmance is within a reasonable time after she reached the age of majority. C) Yes, although making the payment constitutes an implied ratification of the contract, she may still void the contract as long as the disaffirmance is within a reasonable time after she reached the age of majority. D) Yes, because courts recognize a public policy to protect minors who are naïve against others who may take advantage of them. E) No, because making the payment constitutes an implied ratification of the contract, and once a contract is ratified, it is no longer voidable. [Zaltar Zeb] Zeb suffers from delusions that he is from the planet Zaltar. Zeb’s contract with DigiTV, his digital television service provider, has expired. After comparing his past payments to the potential savings from satellite television provider SatTV, Zeb decides to sign a two-year contract with SatTV. After six months with SatTV, Zeb realizes he paid less with DigiTV and he now wants to be released from his contract with SatTV. 72) Is the SatTV contract legally binding on Zeb? A) Yes, although Zeb may suffer from mental problems, Zeb appears to still understand the nature of the contract and the obligations it imposes. B) No, because he did not ratify the contract. C) Yes, because, even though Zeb understands the nature of the contract and the obligations it imposes, Zeb did not disaffirm the contract within a reasonable period of time. D) No, because contracts with mentally incapacitated persons are void. E) No, because contracts with mentally incapacitated persons are void, unless expressly ratified. 73) Under which of the following scenarios might Zeb’s contract with SatTV be voidable? A) If Zeb’s delusions persuaded him to sign the contract with SatTV so he could contact the planet Zaltar and return home. B) If Zeb shows that he no longer believes he is from the planet Zaltar. C) Zeb’s contract with SatTV is voidable because it is a contract with mentally incapacitated persons. D) If Zeb shows that he miscalculated his savings with SatTV. E) If Zeb provides a spreadsheet of his payments with DigiTV. 74) If a court has declared Zeb insane and his sister is appointed guardian, which of the following statements would be true? A) Zeb’s sister has the sole legal capacity to enter contracts on Zeb’s behalf and any contract Zeb enters is void. B) Zeb may enter contracts, but they are voidable by his sister. C) Zeb’s sister may enter contracts on Zeb’s behalf, but only with Zeb’s affirmance. D) Zeb may enter contracts, but they may be disaffirmed by his sister. E) Both Zeb and his sister have capacity to enter contracts, however, any contract Zeb enters may be disaffirmed by Zeb. 75) Trina lists her convertible for sale on Facebook for $12,000, the fair market value. Dion e-mails Trina and offers to buy the car for the price Trina listed. Trina is not aware that Dion had been drinking for the past few hours. Is the contract to buy Trina’s car likely to be valid? A) Yes, because the level of intoxication is the primary factor in determining whether the contract is likely to be valid. B) Yes, because Trina did not know Dion was intoxicated and the agreement is fair. C) Yes, but the only relevant question is whether Trina knew Dion was intoxicated; the price is not relevant. D) No, because it is irrelevant that Trina did not know of Dion’s intoxication. E) No, because intoxicated persons lack capacity to determine fair market value.  Â