Chapter 9 - Homework
1. After consuming a mind-altering drug, Joe buys some real estate from Sue for $100,000. Joe was completely wrecked when he made the deal, and could not understand what he was doing. Due to the after-effects of the drug, Joe goes into a coma that lasts for one year, As soon as he awakes, Joe tries to disaffirm his contract with Sue. Sue maintains that Joe cannot disaffirm because he has ratified the contract. Can Sue maintain the contract and what would Joe argue in return?
2. Lonely Jean, age 15, has to make it on her own. Her parents died in a car accident and she has no one. To protect herself from the winter winds, Jean buys a coat on credit for $200.00 from Ripoff Clothing Store. The coat's reasonable value is $80. Before making the payment on the coat, Jean tells the store that she wants to disaffirm - she wants her money back in exchange for the coat. Can Jean disaffirm the contract. If she can't, what must she pay?
3. Willy, age 17 years, eleven months, buys a used car on credit. The contract also includes a service agreement obligating the seller to perform certain maintenance on the car for one year. Willy makes five monthly payments in the five months after he turns 18. In addition, he has the seller service the car on four separate occasions. After making the fifth payment, Willy announces that be wants to disaffirm; ie: to return the car and get back the full price. Can Willy disaffirm here?
4. Chris, a 17 year old minor, contracted for a business course including training as a computer programmer. He paid the tuition for one year in advance. He attended the first day of class, then changed his mind and withdrew from the course. He demanded the return of his tuition, but his demand was refused. Can Chris get his money back? Why or why not?
5. Courtney, a 17 year-old college freshman, purchased clothes, cosmetics, a bike, and a stereo on credit when she got to college. If she disaffirms the contract, what are the merchants entitled to recover, if anything? What must they be able to prove?
6. Taylor and Nate entered into an agreement in which Taylor agreed to sell Nate his stereo for $3000. Both Taylor and Nate had been drinking at the time the agreement was made. If Nate later refuses to buy the stereo, will Taylor be able to enforce the agreement? What test will the court apply in such a case?
7. Josh, an adult, entered into a contract with Marilyn, age 16. Josh did not realize that Marilyn was so young, although Marilyn did not in any way misrepresent her age. When Josh discovered that Marilyn was younger than 18, Josh refused to perform his obligations under the contract. Marilyn sues Josh. Who will win and why?
Assignment: Chapter 4 Homework Student: ALYSHA PRUITT Take Details Assignment score: 98% Total Time spent: 6 hours, 30 minutes, 11 seconds Score for selected take: 98% (39.2/40) Time spent on selected take: 1. Correct answer: Your answer: Problem 4-2 Economic Versus Taxable Income (LO. 1) Determine the taxpayer's current-year (1) economic income and (2) gross income for tax purposes from the following events. If an amount is zero, enter 0. Economic Income Gross Income for Tax Purposes a. Sam's employment contract as chief executive of a large corporation was terminated, and he was paid $500,000 not to work for a competitor of the corporation for five years. $ 500000 $ 500000 b. Elliot, a 6-year-old child, was paid $5,000 for appearing in a television commercial. His parents put the funds in a savings account for the child's education. $ 5000 $ 5000 c. Valerie found a suitcase that contained $100,000. She could not determine who the owner was. $ 100000 $ 100000 d. Winn purchased a lottery ticket for $5 and won $750,000 from it. $ 749995 $ 750000 e. Larry spent $1,000 to raise vegetables that he and his family consumed. The cost of the vegetables in a store would have been $2,400. $ 1400 $ 0 f. Dawn purchased an automobile for $1,500 that was worth $3,500. The seller was in desperate need of cash. $ 2000 $ 0 2. Correct answer: Your answer: Problem 4-5 Gross Income (LO. 2) Determine Amos Watkins's gross income in each of the following cases. If an amount is zero, enter "0." Gross Income a. In the current year, Amos purchased an automobile for $25,000. As part of the transaction, Amos received a $1,500 rebate from the manufacturer. $ 0 b. Amos sold his business. In addition to the selling price of the stock, he received $50,000 for a covenant not to compete—an agreement that he will not compete directly with his former business for five years. $ 50000 c. Amos owned some land he held as an investment. As a result of a change in the zoning rules, the property increased in value by $20,000. $ 0 eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook eBook Page 1 of 11 Chapter 4 Homework 11/4/2013 http://cvg.cengagenow.com/ilrn/takeAssignment/viewAssignmentPrintableMain.do?assign. ..