If a Minor Contracts for Necessaries, the Minor's Liability Is

question 11

Multiple Choice

If a minor contracts for necessaries, the minor's liability is quasi-contractual in nature. This means that:

• A)the minor is not required to pay the contract price but will be required to pay a reasonable amount to avoid unjust enrichment.
• B)the firm does not need to pay the minor because the contract is voidable.
• C)the minor must pay the contract price to prevent the firm from being unjustly enriched.
• D)the minor's parent or spouse needs to pay the reasonable value of what was received.

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Definitions:

Acquisition Method

An accounting approach used for consolidating the financial statements of a parent company and its subsidiaries.

Voting Common Shares

Shares of common stock that provide the shareholder with the right to vote on corporate matters.

Net Income

The total profit of a company after all revenues, costs, and expenses have been deducted, also known as the bottom line.