Sam Is Mentally Incompetent but Has Not Been Adjudged by a Court

question 38

Multiple Choice

Sam is mentally incompetent but has not been adjudged by a court to be incompetent. Sam enters into a contract with Tony for the cleaning and maintenance of the Uptown Offices building. Most likely, the contract is

• A) voidable if Sam did not comprehend the consequences.
• B) enforceable if Tony did not know that Sam was mentally incompetent.
• C) enforceable if Sam is the owner of the building.
• D) void.

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Definitions:

Average Inventory

The mean amount of inventory a business has in stock over a certain period, calculated to assess inventory efficiency.

Flow Time

The total time a product or service takes to move through a production system, from start to finish.

Commodity Products

Goods that are essentially interchangeable with others of the same type, often traded on bulk markets.

Quantity Discounts

Price reductions based on the volume of purchase, incentivizing buyers to purchase larger amounts by offering lower per-unit prices at higher volumes.