In: Operations Management
QUESTION 2
Which of the following is the rule in many states regarding a minor's misrepresentation of his or her age?
a. |
That if a competent party relies on a misrepresentation in good faith, the minor gives up the right to disaffirm the agreement. |
|
b. |
That the minor must restore the competent party to that party's precontractual position before obtaining the disaffirmance. |
|
c. |
That the minor may disaffirm but that the competent party has the right to sue the minor in tort and recover damages for fraud. |
|
d. |
That misrepresentation does not affect the minor's right to disaffirm the contract. |
|
e. |
That misrepresentation results in the minor receiving a return of only half the consideration he or she supplied. |
1 points
QUESTION 3
When a former minor does not specifically state that he affirms a contract entered into as a minor, but takes some action that is consistent with intent to ratify the contract, which of the following has occurred?
a. |
Implied ratification |
|
b. |
Express ratification |
|
c. |
Express novation |
|
d. |
Implied novation |
|
e. |
Continued safety |
QUESTION 4
A[n] ________ is a false representation of a material fact that is a misstatement of fact that is intentionally made and justifiably relied upon.
a. |
Negligent misrepresentation |
|
b. |
Fraudulent misrepresentation |
|
c. |
Scienter misrepresentation |
|
d. |
Acknowledged misrepresentation |
|
e. |
True misrepresentation |
5- Gordon, Melinda's long-time attorney, uses his position as her attorney to persuade her to sign over her property to Gordon's best friend Bartholomew. This is undue influence.
True
False
Ans 2: option d: That misrepresentation does not affect the minor's right to disaffirm the contract.
Explanation: Contracts with minors (4318.02) states that the minor has to only disaffirm from the contract by manifesting the intention not to be bound by it. It can be manifested by words or action. A minor can disaffirm the contract any time when he is minor or within a reasonable time after the minor comes of age. The disaffirmance must be within a time frame and the contract must be disaffirmed in entirety. Only the minor is disaffirmed from the contract all other adults are bound by the contract until they are released by minors disaffirmance. The minors obligation on disaffiramnce is to return the goods or any other consideration in their possession. In a few states the minor may have to restore the other party to the original position he/she were before the contract was made,
Ans 3: option a: Implied ratification
Explanation: RATIFICATION is If a person communicates by words, actions or conduct that he/she are agreeing with terms of the contract. Ratifying a contract means agreeing to its terms and conditions. It also binds the individual to the terms of the contract. Ratification can be implied or express. Implied ratification is when actions or behavior indicate intent to honor the contract. Express ratification is when the willingness to honor the contract is stated clearly verbally or in written. Once a contract is ratified it cannot be revoked. Once a minor reaches the age of consent his actions may show his intent to honor the contract. The contract can be ratified by any act, words, or course of conduct of the principal.
Ans 4: Option b: Fraudulent misrepresentation
Explanation: Misrepresentation is a statement, which is not consistent with the facts. If a misrepresentation is intentional, it is a fraudulent misrepresentation. A fraudulent misstatement is a misstatement of fact, which was done intentionally. It includes the concealment of facts, non-disclosure of facts, the statement made false by subsequent events, statement of opinion, misstatement of the law, the assertion of intention and reliance.
5- Gordon, Melinda's long-time attorney, uses his position as her attorney to persuade her to sign over her property to Gordon's best friend Bartholomew. This is undue influence.
Ans 5: Option: True
Explanation: Undue influence occurs when an individual uses an advantage to coerce a decision. Here Gordon Melina’s attorney used his position as an attorney to coerce Melinda to sign over her property to Gordon’s best friend. Undue influence is used on Melinda by Gordon.