1) Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by:

Ruby, because she is a minor, but Ruby must return the car.

Ruby, because she is a minor, and Ruby may keep the car.

Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car.

Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car.

2) Marie and Molly enter into a written contract to sell Maries home to Molly. At the time the contract is executed, Marie tells Molly that for the last six months she has been sharing the home with a family of extraterrestrial beings. Marie states that she has asked the extraterrestrials to move out, but they wont; therefore, she is selling the family home to get rid of them and is willing to sell the home to Molly for well below market price. After the sale of the home is complete, Maries children challenge the sales contract on the grounds that Marie did not have the mental capacity necessary to enter into a contract, even though Marie has not been declared incompetent by the courts. The contract between Marie and Molly can be rescinded:

by either Marie or Molly.

under no circumstances, because Marie was not adjudicated insane before she signed the contract.

only if Maries children have Marie committed.

if Maries children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract.

3)Gavin and Allison are having drinks after work. After several rounds, the topic of Gavins sports car comes up. Gavin is extremely proud of his sports car and brags about it all the time. To impress Allison, Gavin offers to sell Allison his expensive sports car for $5,000. Allison jumps at the deal, because she knows the car is worth much more than $5,000. They even write the deal down on a napkin, and both Gavin and Allison sign the napkin. The next morning, when Allison brings $5,000 to purchase the sports car, Gavin explodes. Gavin tells Allison that he was just kidding and that he would never sell his expensive sports car for such a low price. When Allison tries to enforce the deal:

Gavin can either rescind the contract based on incapacity or ratify the contract.

Neither Gavin nor Allison can rescind the contract because it is in writing.

Allison can either rescind the contract based on incapacity or ratify the contract.

Either Gavin or Allison can rescind the contract based on incapacity or ratify the contract.

4)Christiana is seventeen years old and has been emancipated. Christiana shares an apartment with a roommate and totally supports herself. Christiana purchases a stereo from Best Stereo Place, Inc. and signs an installment agreement to pay for the stereo over the next twelve months. After paying on the stereo for three months, Christiana decides she no longer wants the stereo. To avoid the rest of the payments on the stereo, Christiana can:

give notice to Best Stereo Place that she wishes to rescind the contract based on her minority status.

ask Best Stereo Place to rescind the contract based on Christianas minority status.

do nothing. Because Christiana signed the contract as an emancipated minor, she has no grounds to rescind the contract.

just stop paying. Because Christiana is a minor, she is not required to give notice to Best Stereo.