When John Bought a Car from His Father's Old Classmate,Joe,he

question 27

Multiple Choice

When John bought a car from his father's old classmate,Joe,he was only 17 years old.The price of the car was $5000.He paid $1000 down and was to pay the remaining $4000 over time.With these facts in mind,which of the following statements is true? (Read each statement separately.)

• A) Even if the car is defective, John could not sue Joe.
• B) If John has an accident and refuses to pay the balance, Joe could successfully sue John for breach of contract.
• C) If John has an accident because of his negligent driving and he refuses to pay, Joe could successfully sue him in negligence to get around any difficulty in suing him in contract.
• D) If the car is defective, John could sue Joe for breach even though Joe could not sue him.
• E) If Joe didn't realize John was only 17 years old, he can enforce the contract against him no matter what his age.

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Definitions:

Cooperative

An organization formed by individuals to market new products. Individuals in a cooperative pool their resources together to gain an advantage in the market.

Shareholder

An investor who holds stock in a corporation, and thus is an owner of the corporation.

Leasehold Estates

Leasehold estates represent a tenant's right to occupy or use real property for a specific period of time, as defined by a lease agreement.

Possessory Interest

A legal right to occupy or control property, irrespective of ownership.