In Lopez V

question 61

Multiple Choice

In Lopez v.Kmart Corporation,the case in the text regarding disaffirmance,did the court find the minor plaintiff's disaffirmance of an employment contract to be reasonable?

• A)Yes,because the disaffirmance occurred within six months of reaching the age of majority.
• B)Yes,because the type of contract at issues was an arbitration agreement.
• C)No,because the plaintiff could have disaffirmed the contract when he was under the age of majority but chose not to do so.
• D)Yes,because the disaffirmance occurred within one month of reaching the age of majority.
• E)The court did not find the disaffirmance to be reasonable.

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Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding non-operating income and expenses.

Common Fixed Expense

A recurring cost that does not vary with the level of output or sales, such as rent or salaries.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific product, department, or segment of a business, enabling more accurate profitability analysis.

Common Fixed Expenses

Costs that do not vary with the level of production or sales and are shared across different parts of a business, such as corporate office expenses.