In May, Joey, a 17-Year-Old, Enters into a Contract to Factory

question 7

Multiple Choice

In May, Joey, a 17-year-old, enters into a contract to factory order a car. He gives the dealer a $2,000 deposit. The car will be delivered in September. Joey reached the age of majority in July. He took no action. Is he bound by the contract and required to take delivery of the car in September?

• A) Yes, it remains binding unless repudiated within a reasonable time of attaining the age of majority.
• B) Yes, it remains binding unless ratified within a reasonable time of attaining the age of majority.
• C) No, it is not binding unless repudiated within a reasonable time of attaining the age of majority.
• D) No, it is not binding unless ratified within a reasonable time of attaining the age of majority.
• E) No, it is not binding. It is automatically repudiated upon a minor attaining the age of majority

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Definitions:

Domestic

Pertaining to or produced within a country's borders, often in contrast to foreign or international.

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

Consumer Surplus

The divergence between the total price consumers are willing and able to contribute towards a good or service and the total price they actually contribute.

Japanese Government

The national government of Japan, characterized by a constitutional monarchy and a parliamentary government.