Fay, Age 17, Ordered a Pair of Skis on the Installment

question 43

Multiple Choice

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold the skis to Sharon and disaffirmed the contract. Fay is:

• A) still liable since she had to disaffirm before her 18th birthday.
• B) still liable because selling the skis amounted to a ratification.
• C) still liable because she used the skis.
• D) not liable because skis are not necessaries.

---

Definitions:

Socialist Economy

An economic system where the production and distribution of goods and services are regulated by the government, aiming for equal wealth distribution and minimizing economic inequalities.

State Enterprises

Businesses owned and operated by the government aimed at providing services or goods to the public.

Incentives

Motivational tools or rewards designed to encourage specific actions or behaviors by individuals or groups.

Economic Recession

A significant decline in economic activity across the economy, lasting for several months or longer, often visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.