Ch 12 Flashcards
revenue raising licensing statue
235- requires a salesman be license but not establish a education and training requirements.
exculpatory clause
236- false
it is not all
regulatory licensing statute
235- requires doctors to be licensed
test, education requirements
necessaries - quasi contract
228- true
intoxicated person
fasle
231
false- in most states it does not matter if you are intoxicated involuntary
necessaries of life
228- true
dissaffirmance
227
the act of a minor to rescind a contract under the infancy doctrine. may be done orally, in writing, or by the minor’s conduct.
contract my be dissaffirmed at any time prior to the person’s reaching the age of majority plus a reasonable time.
ratification
228
act of a minor after the minor has reached the age of majority by which he or she accepts a contract entered into when a minor.
a. On March 20, Andy Small became seventeen years old, but he appeared to be at least eighteen (the age of majority). On April 1, he moved into a rooming house in Chicago and orally agreed to pay the landlady $300 a month for room and board, payable at the end of each month.
b. On April 4, he went to Honest Hal’s Carfeteria and signed a contract to buy a used car on credit with a small down payment. He made no representation as to his age, but Honest Hal represented the car to be in top condition, which it subsequently turned out not to be.
c. On April 7, Andy sold and conveyed to Adam Smith a parcel of real estate that he owned. On April 30, Andy refused to pay his landlady for his room and board for the month of April; he returned the car to Honest Hal and demanded a refund of his down payment; and he demanded that Adam Smith reconvey the land, although the purchase price, which Andy received in cash, had been spent in riotous living.
Decisions as to each claim?
a. If room and board are a necessary, Small owes his landlady a reasonable amount.
b. The term “top condition” is puffing, not misrepresentation or fraud. If the car is a necessary, Small owes a reasonable amount for the car. If the car is not a necessary, Small owes nothing for the car.
c. Can not disaffirm a contract for the sale or purchase of real property until after attaining the age of majority.
Johnson and Wilson were the principal shareholders in XYZ Corporation, located in the city of Jonesville, Wisconsin. This corporation was engaged in the business of manufacturing paper novelties, which were sold over a wide area in the Midwest. The corporation was also in the business of binding books. Johnson
purchased Wilson’s shares in XYZ Corporation and, in consideration thereof, Wilson agreed that for a period of two years he would not (a) manufacture or sell in Wisconsin any paper novelties of any kind that would compete with those sold by XYZ Corporation or (b) engage in the bookbinding business in the city of Jonesville. Discuss the validity and effect, if any, of this agreement.
Valid–time and geographical area are both reasonable
Anthony promises to pay McCarthy $10,000 if McCarthy reveals to the public that Washington is a communist. Washington is not a communist and never has been. McCarthy successfully persuades the media to report that Washington is a communist and now seeks to recover the $10,000 from Anthony, who refuses to pay. McCarthy initiates a lawsuit against Anthony. What will be the result?
McCarthy loses–the bet was illegal
On July 5,2008, Bill and George entered into a bet on the outcome of the 2008 presidential election. On January 28, 2009, Bill, who bet on the winner, approached George seeking to collect the $3,000 George had wagered. George paid Bill the wager but now seeks to recover the funds from Bill. Result?
George loses–the bet was illegal
