Kevin, a 16-year old, paid $4600 cash for a used Camaro from Star Chevrolet (“Star”). When...

Kevin, a 16-year old, paid $4600 cash for a used Camaro from Star Chevrolet (“Star”). When the car blew a gasket, the dealer refused to give Kevin his money back. Kevin repaired the car himself and drove it on the highway, where it was wrecked. Kevin sued Star to get his money back.

Is Kevin entitled to disaffirm the contract event though the Camaro has been destroyed? Explain.

Is this contract a void or voidable contract?

List the two exceptions to general rule concerning minors and contracts

Solutions

Expert Solution

Answer- Yes, Kevin will be entitled to disaffirm the contract even though the camaro has been destroyed because Kevin is 16 years old and is a minor. The minimum age for a person to sign a legal contract is 18 years. Moreover, Kevin repaired the car himself which means he tampered with the car and will not be eligible to get a refund.

The contract will be considered as a void contract as Kevin is a minor and under the age of 18 years. A person cannot sign a legit contract until he reaches the age of 18. Moreover, Kevin drove the car on highway and for driving a car on highway requires driving experience of minimum 1 year. The minimum age to obtain a license is 16 and kevin is 16 years old. That means Kevin was driving the car where he was not legally allowed to.

2 exceptions to general rule concerning minors and contracts.
1) A minor cannot void a contract for necessities like food, clothing, and lodging.
2) Minors who enter into sports or entertainment contracts are held to them and cannot void them at will.

If you liked my answer please give a thumbs up

keosha answered 2 weeks ago

Next > < Previous

Related Solutions

Kevin provided services to several clients this year who paid with different types of property. Which...

Kevin provided services to several clients this year who paid with different types of property. Which of the following payments is not included in Kevin's gross income? Multiple Choice Cash. Shares of stock listed on the New York Stock Exchange. A used car. Gold coins. All of these are included in gross income.

Kevin is a 6-year-old boy who is brought in for evaluation by his parents. The parents...

Kevin is a 6-year-old boy who is brought in for evaluation by his parents. The parents are concerned that he has a really deep cough that he just can’t seem to get over. The history reveals that he was in his usual state of good health until approximately 1 week ago when he developed a profound cough. His parents say that it is deep and sounds like he is barking. He coughs so hard that sometimes he actually vomits. The...

An investment that Kevin is considering offers the following cash flows. Year 1 Initial investment of...

An investment that Kevin is considering offers the following cash flows. Year 1 Initial investment of $10,000 Year 2 Inflow of $2,000 Year 3 Inflow of $1,500 Year 4 Additional investment of $5,000 Year 5 Inflow of $1,200 Year 6 Inflow of $2,200 Year 7 Inflow of 1,500 Year 8 Inflow of $1,000 Year 9 Inflow of $1,200 Year 10 Sale proceeds of $17,000 5. What is the internal rate of return (IRR) that this investment offers if all cash...

Kevin, a 65-year-old male, presents to the office with chest pain complaints on inspiration and shortness...

Kevin, a 65-year-old male, presents to the office with chest pain complaints on inspiration and shortness of breath(SOB). He states that the chest pain began about 12 hours ago and feels like a sharp pain in the center of his chest. When the pain began, he immediately took aspirin and then went to bed. When he woke up this morning, the pain was still there. Although not as intense. The patient’s medical history includes nephrolithiasis and gastroesophageal reflux disease. Social...

Prepaid expenses before transactions when cash is paid

Assuming that the accrual basis of accounting is used, when a company collects the cash from...

Assuming that the accrual basis of accounting is used, when a company collects the cash from a credit sale to a customer, -accounts receivable increase. -total assets increase. -the company records an increase in sales and an increase in cash. -total assets decrease. -there is no change in the total assets of the company.

16.The expenditures control account of a governmental unit is debited when: The invoice is paid. The...

16.The expenditures control account of a governmental unit is debited when: The invoice is paid. The budget is recorded. Supplies are ordered. Supplies previously encumbered are received. 17.The special revenue fund of a governmental unit is an example of what type of fund? Governmental. Proprietary. Fiduciary. Internal service. 18.The account "interfund transfers in" would be classified in a general fund statement of revenues, expenditures, and changes in fund balance as a (an): Revenue. Current liability. Fund balance addition. Other financing...

Going Under the Knife: A Case on Membrane Structure and Function Twenty-year-old Kevin groaned and clutched...

Going Under the Knife: A Case on Membrane Structure and Function Twenty-year-old Kevin groaned and clutched his abdomen as he lay on the emergency room gurney. He had just been diagnosed with acute appendicitis and was waiting to be taken to the operating room (OR). Although he desperately wanted the pain to stop, Kevin was terrified of having general anesthesia. He hoped his fear wasn’t obvious to his older brother Cole, who was finishing medical school and thought he knew...

Tony Chadwick is a 16-year-old African American male admitted to ICU from the urgent care with...

Tony Chadwick is a 16-year-old African American male admitted to ICU from the urgent care with newly diagnosed type 1 DM with DKA. His mother took him to the local urgent care with a 2-day history of vomiting and abdominal pain. Tony also complained of thirst, blurry vision, and fatigue. His mother smelled a fruity odor on his breath this morning. The nurse at the urgent care clinic found that Tony had a blood glucose level of 520 mg/dL and...

At the start of the current year, a company paid for the following in cash: ...

At the start of the current year, a company paid for the following in cash: Copyrights, $2,000,000 Equipment, $25,000,000 Goodwill, $4,500,000 Inventory, $1,500,000 Land, $15,000,000 Patents, $1,500,000 Prepaid rent, $500,000 Research and development, $500,000 Supplies, $4,000,000 Trademarks, $1,000,000 It amortizes its intangibles over 10 years. Determine its current year amortization expense. Group of answer choices a. $950,000 b. $400,000 c. $500,000 d. $150,000 e. $350,000 2. Based on the following...

Subjects