When a Minor Avoids a Contract to Purchase a Car

question 28

Multiple Choice

When a minor avoids a contract to purchase a car:

• A) the parents of the minor are liable for the purchase price.
• B) a relative who cosigned the contract is liable for the purchase price.
• C) a friend to whom the minor loaned the car is liable for the purchase price.
• D) the automobile insurance company is liable for the purchase price.

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Definitions:

Negotiable Instrument

A paper confirming the promise to pay a certain sum of money, either immediately upon request or at a predetermined date, with the identity of the person making the payment specified on it.

Oral Negotiable

A verbal agreement that is intended to be binding but may lack the formal requirements of a written contract, particularly in the context of negotiable instruments.

Maker Or Drawer

The individual or entity that creates or signs a promissory note, check, or draft, promising to pay a certain sum.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States intended to harmonize laws across the states.