Mike,who Is 16 Years Old,buys a Motorcycle from Cycle Sellers,Inc

question 47

Multiple Choice

Mike,who is 16 years old,buys a motorcycle from Cycle Sellers,Inc.Assume that Mike pays $5,000 and that the fair value of the motorcycle at the time of purchase is $4,500.Which of the following is true?

• A) This is an illegal contract because Mike is a minor.
• B) This contract is void because Mike is a minor.
• C) Even if Mike signs a statement as part of the contract that states,"I agree not to disaffirm this contract," Mike may nonetheless disaffirm when he is 17 years old.
• D) There was probably undue influence involved with this contract since Mike is a minor and the price charged was greater than the fair market value.
• E) If a court decides that the motorcycle is a necessary,Mike will be obligated to pay the $5,000.

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Definitions:

Intersection

An operation in set theory whereby only the elements that are common to all sets are included in the outcome.

Marginal Probability

The probability of a single event occurring without consideration of any other events.

Mutually Exclusive

Two events that cannot occur at the same time, indicating no overlap in possible outcomes.

Independent

The condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another event.