In May, Joey, a 17-Year-Old From, Charlottetown, P

question 10

Multiple Choice

In May, Joey, a 17-year-old from, Charlottetown, P.E.I., 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. In August he called the dealer to see if the car was still scheduled for delivery in September and assured him that he would be ready to take delivery at the Charlottetown, P.E. I. dealership. 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 unless ratified, in writing, within a reasonable time of attaining the age of majority.

---

Definitions:

Common Share

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits via dividends.

Stockholders' Equity

The residual interest in the assets of a corporation remaining after deducting its liabilities, representing the ownership interest of the shareholders.

Dividend Yield

Dividend Yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price, indicating the return on investment from dividends alone.

Cash Dividends Per Share

The amount of cash distributed to shareholders per share out of a company's earnings.