FYLSX Defenses to Contract Enforceability 4

Question 1

A contract between a licensed contractor and a homeowner is unenforceable because the contractor lacked the required state license at the time of contracting. This is an example of:

Accepted Answer

Illegality based on a licensing statute designed to protect the public

Answer

Contracts violating licensing statutes enacted for public protection are generally unenforceable, while violation of revenue-raising statutes may still allow recovery.

Question 2

A contract provision states that in the event of any dispute, the consumer must travel to a distant city for mandatory arbitration and waive all class action rights. A court examining this clause for unconscionability would focus on:

Accepted Answer

Both the oppressive terms (substantive) and the absence of meaningful choice (procedural)

Answer

Courts evaluate unconscionability based on both substantive elements (oppressive terms) and procedural elements (lack of meaningful bargaining opportunity).

Question 3

Under the UCC, which of the following oral contracts for the sale of goods does NOT require a writing under the Statute of Frauds?

Accepted Answer

A contract for the sale of 500 custom-engraved trophies for $800

Answer

Under the UCC, specially manufactured goods not suitable for sale to others in the ordinary course of business are exempt from the writing requirement even if over $500.

Question 4

An adult enters into a contract while adjudicated mentally incompetent with a court-appointed guardian. The contract is:

Accepted Answer

Void because adjudicated incompetents lack legal capacity to contract

Answer

A person who has been adjudicated mentally incompetent by a court lacks legal capacity, making any contract they enter into void, not merely voidable.

Question 5

A minor disaffirms a contract for the purchase of a motorcycle. The seller demands the minor return the motorcycle, which has been damaged in an accident. Most courts would hold that the minor:

Accepted Answer

May disaffirm and return the motorcycle in its damaged condition without further liability

Answer

Under the majority rule, a minor may disaffirm and return the property in whatever condition it is in, even if damaged, and recover any consideration paid.

(FYLSX) Baby Bar Exam Practice Test

(FYLSX) Baby Bar Exam Practice Test

FYLSX Defenses to Contract Enforceability 4