Which Statement Applies in the Dispute Between Rose and Sal's

question 63

Multiple Choice

Which statement applies in the dispute between Rose and Sal's Car Savings, considering that she waited to turn 18 before attempting to disaffirm the contract?

• A) So long as, after reaching the age of majority, Rose did not state orally or in writing that she intended to be bound by the contract, then she did not commit an express ratification.
• B) Rose was required to expressly ratify the contract before she could be bound to it.
• C) An implied ratification occurs when parents agree to accept the debt entered into by a minor.
• D) If Rose caused any damage whatsoever to the car, she was said to have impliedly ratified the contract.
• E) Rose was required to expressly ratify the contract before she could be bound to it so long as no damage was done; but if she did any damage to the car, as a matter of law, she is said to have impliedly ratified it.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits through dividends.

Par Value

The nominal value of a bond, stock, or other security, as stated by the issuer upon issuance.

Discount

A reduction applied to the usual cost of goods, services, or invoices, often to encourage prompt payment or increase sales.

Preferred Stock

A type of stock that grants holders priority dividends, often with fixed rates, and preferential treatment in the event of liquidation over common stockholders.