When John Bought a Car from His Father's Old Classmate

question 82

Multiple Choice

When John bought a car from his father's old classmate, Joe, he was only seventeen years old. The price of the car was $5000. He paid $1000 down and was to pay the remaining $4000 over time. With these facts in mind, which of the following statements is true? (Read each statement separately.)

• A) Even if the car is defective, John could not sue Joe.
• B) If John has an accident and refuses to pay the balance, Joe could successfully sue John for breach of contract.
• C) If John has an accident because of his negligent driving and he refuses to pay, Joe could successfully sue him in negligence to get around any difficulty in suing him in contract.
• D) If the car is defective, John could sue Joe for breach even though Joe could not sue him.
• E) If Joe didn't realize John was only 17 years old, he can enforce the contract against him no matter what his age.

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Definitions:

Nonmonetary Rewards

Incentives or benefits given to employees that do not involve direct financial compensation, such as recognition or growth opportunities.

Eliminate

To completely remove or get rid of something, often used in the context of removing inefficiencies or redundancies in a system.

Base Pay

The initial rate of compensation that an employee receives, not including bonuses, benefits, or other forms of additional compensation.

Merit Pay Plans

Compensation strategies that reward employees based on their performance, often aimed at boosting motivation and job performance.