Which of the Following Is True Regarding the Obligation of a Minor

question 55

Multiple Choice

Which of the following is true regarding the obligation of a minor on disaffirmance?

• A)In all states,a minor must return any consideration in his control,but he or she is entitled to a full refund of any purchase price regardless of the condition of the consideration when returned.
• B)In all states,a minor is entitled to a full refund without returning consideration.
• C)In all states,a minor must return any consideration in his control,must make restitution,and must pay for any loss in value of the collateral.
• D)In all states,a minor only receives a return of one-half of the minor's investment.
• E)The obligations of a minor on disaffirmance vary from state to state.

---

Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been subtracted, used to cover fixed costs and to generate profit.

Production Capacity

The maximum amount of goods or services that can be produced in a given time period with available resources.

Materials Markup

An amount added to the cost of materials to cover overhead and profit in the pricing of products.

Time and Materials Pricing

A billing method where customers are charged based on the actual time spent on a project and the cost of materials used.