Which of the Following Is True About Persons Who Are

question 23

Multiple Choice

Which of the following is true about persons who are mentally ill?

• A) A contract made by a person who is mentally ill is still non-voidable by the person after regaining sanity.
• B) If a guardian has been legally appointed for a mentally ill person, any contract made by the latter is valid and can be ratified by the ward.
• C) If a contract is for a necessity, the other party to the contract cannot claim against the estate of the one who is mentally ill.
• D) In a contract for necessity, if the contract is fair and the other party has no knowledge of the mental illness, the court does not have the power to order relief.
• E) In a contract for necessity, only if a mental illness impairs the competence of the person in the particular transaction can the contract be avoided.

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Definitions:

FICA

The Federal Insurance Contributions Act; a U.S. law that requires a deduction from paychecks to fund Social Security and Medicare benefits.

OASDI

The Old-Age, Survivors, and Disability Insurance program, part of the U.S. Social Security system, providing benefits to eligible retirees, their families, and the disabled.

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Maximum Earnings Limits

The ceiling on the amount of earnings on which certain taxes or contributions, such as Social Security in the United States, are required.