Paralegal Exam Prep - Question List

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91. Jill's father, Joe, bought her a brand new blue car for her 17th birthday. Jill's father paid $30,000 for the car. Jill loved the car, but wished that it were red. She stumbled upon a cute, used red sports car that was for sale for just $10,000. Jill decided to sell her brand new blue car to her Aunt Jeanne for $11,000. When Joe found out about Jill's agreement with Aunt Jeanne, he was outraged. He demanded that Aunt Jeanne return the car to Jill and that Jill return the money to Aunt Jeanne. Aunt Jeanne refused. Will a court allow Jill to get out of the contract?
  1. No. Even though Jill is a minor, it is clear that she knew what she was doing when she entered into the agreement.
  2. No. Even though Jill is a minor, because Jill is the legal owner of the car she has the capacity to enter into an agreement to sell it.
  3. No. Even though Jill is a minor, because she has a driver's license, the court will deem her capable of entering into an agreement to sell a car.
  4. Yes. Because Jill is a minor, if she chooses to void the contract, the court will permit it.
  5. Yes. Because Jill is a minor, the contract is void.
92. What two conditions must be present for a contract that is entered into with a person who is mentally ill to be voidable?
  1. The person with the mental illness must be committed to a mental health facility and must be unable to act in a reasonable manner.
  2. The person with the mental illness must be unable to act in a reasonable manner and a physician must have certified that the person is unable to act in a reasonable manner.
  3. The person with the mental illness must be under the care of a mental health professional and the other party must have intended to take advantage of the mentally ill person.
  4. The other party to the contract must have known that the person was mentally ill and intended to take advantage of the mentally ill person.
  5. The person with the mental illness must be unable to act in a reasonable manner and the other party must have reason to know of the mentally ill person's condition.
93. If a court deems a contract unconscionable, it deems it to be:
  1. Too long.
  2. Against public policy.
  3. Unwritten.
  4. Unfair.
  5. B and D.
94. What is the difference between substantive unconscionability and procedural unconscionability?
  1. Procedural unconscionability occurs when the contract terms are excessively oppressive, while substantive unconscionability occurs when there were inequities during contract formation.
  2. Substantive unconscionability occurs when the contract terms are excessively oppressive, while procedural unconscionability occurs when there were inequities during contract formation.
  3. Substantive unconscionability occurs when the contract terms are harsh for both parties, while procedural unconscionability occurs when the contract terms are harsh for just one party.
  4. Substantive unconscionability occurs when critical terms are left out of the contract, while procedural unconscionability occurs when the written contract deviates significantly from the orally negotiated terms.
  5. Substantive unconscionability occurs when the contract terms favor one party, while procedural unconscionability occurs when there were inequities during contract formation.
95. Diana was selling $500 tickets to her favorite charity's fundraiser. She asked her good friend, Donna, to purchase a ticket. Donna declined, stating that she could not afford the ticket price. Diana persisted. When Donna refused to purchase a ticket, Diana declared, "If you do not buy a ticket, I will never go shopping with you again!" Fearing the loss of her shopping buddy, Donna gave in and agreed to purchase a ticket. When Diana tried to collect the $500 from Donna, Donna refused to give Diana the money. If Diana sues Donna for the price of the ticket, who will win?
  1. Donna will win because she entered into the contract with Diana under duress.
  2. Donna will win because she never intended to buy a ticket. She just wanted to go shopping.
  3. Diana will win because she has an enforceable contract with Donna.
  4. Diana will win because the ticket is for a charitable event.
  5. Diana will win because Donna lied when she said she could not afford the ticket price.

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