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:

Partial Goodwill Method

An accounting approach where goodwill is calculated only for the portion of a subsidiary owned by the parent company.

Non-controlling Interest

The portion of equity interest in a subsidiary not attributable directly or indirectly to the parent company.

Acquisition Date

The specific date on which control of one corporation is acquired by another, dictating the measurement of values for transaction accounting.

Subsidiary Entity

A company that is controlled by another company, known as the parent company, typically through ownership of more than half of its voting stock.