In answer to a radio advertisement, a teenager two months shy of his 18th birthday contracted to buy a late model car from a car dealership. The agreement required a $1500 down payment with the remainder of the $7200 price to be paid in monthly installments to a local finance company. The teenager’s first eight payments were made regularly until his driver's license was suspended. He then informed the company that no further payments would be forthcoming. The finance company sued for the remaining payments. The age of majority in the teenager’s state is 18 years. Would the teenager be liable for the balance of the payments?
A. Yes, because the car dealership was liable on the contract from the outset, notwithstanding the teenager’s minority.
B. Yes, because he kept the car for six months after reaching the age of majority.
C. No, because he was a minor at the time of the contracting, and the contract is voidable by him.
D. No, because he informed the finance company in a timely manner after his driver's license was suspended.

Answers

Answer 1

Answer: B. Yes, because he kept the car for six months after reaching the age of majority.

Explanation:

When the teenager had not reached the age of majority, holding him liable for the contract would have been challenging. The teenager however reached the age of majority he became legally liable for decisions and contracts.

After this age, he had the car for 6 more months which means that he had accepted the contract as an adult. He cannot therefore simply wiggle out of the payment because he signed an enforceable contract.


Related Questions

Mariano Manufacturing can issue a 25-year, 8.1% annual payment bond at par. Its investment bankers also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? Group of answer choices6.66% 6.99% 7.34% 7.71% 8.09%

Answers

Answer:

6.66%

Explanation:

First and foremost, if a bond is issued at par it means that the coupon rate and before-tax yield to maturity are the same. hence, in this case, the before-tax yield on the bond is 8.10%, the same as its coupon rate

after-tax yield on bond=before-tax yield*(1-tax rate)

tax rate=40%

the after-tax yield on bond=8.10%*(1-40%)

the after-tax yield on bond=4.86%

after-tax return on the preferred=the after-tax yield on bond+after-tax risk premium

after-tax risk premium=1.0%

after-tax return on the preferred=4.86%+1.0%

after-tax return on the preferred=5.86%

However, the before-tax  coupon rate on the preferred is determined below based on the dividend received deduction principle obtainable in the US

Pre-Tax Coupon Rate = after-tax return on the preferred/(1-(Tax Rate*Taxable Percentage)

The principle that 70% of dividends, that only 30% are taxable, hence, the taxable percentage is 30%

Pre-Tax Coupon Rate =5.86%/(1-(40%*30%)

Pre-Tax Coupon Rate =5.86%/0.88

Pre-Tax Coupon Rate =6.66%

T F Credit reports are issued monthly, so you know how much money topay toward your credit card bill.

Answers

Answer:

False

Explanation:

A financial statement can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

Generally, financial statements are issued to recipients on a monthly basis.

A credit report can be defined as a financial document that comprises of detailed information about a person's credit history or activities with respect to borrowed money (loans). It is usually prepared by a credit bureau.

A credit score can be defined as a numerical expression between 300 - 850 that represents an individual's financial history and credit worthiness. Therefore, a credit score determines the ability of a borrower to obtain a loan from a lender.

This ultimately implies that, the higher your credit score, the higher and better it is to obtain a loan from a potential lender.

In conclusion, credit reports are issued to a customer on request and at any given time, so he or she knows how much money to pay toward your credit card bill.

Why was agricultural sector declared as critical industry and exempt from the hardest lockdown regulations

Answers

Answer:

Kindly check explanation

Explanation:

Food production and consumption is critical and key to survival, no matter an established and generally accepted number of daily square meal of 3 is widely adopted. This gives a clue tgta, no matter a country's problem or issues they face, aspects which concerns food and generally agriculture would be treated preferentially. Following the outbreak and severe spread of the deadly virus, it became imperative that affected nations introduced critical measures to try and curtail its spread, stringent measures include ; restriction of movement, strict emphasis on social distancing, hence, the need to reduce the number of people on a particular site or work area, travel restrictions, among others. This restrictions had s here effect on the agriculture and the food supply chain and its effect was quickly very noticeable as people would eventually die of hunger if nothing was done. This prompted government to introduce exemptions and preference afforded to the agricultural sector ; such as keppibg trade channels open in other to facilitate food distribution, timely observation and monitoring of food crisis among others.

The last two answers for number 6 is “Firefighting” and “Public Safety Inspection”

Answers

Answer:

9. Carbon paper

37. Window envelope

6. teaching

Other Questions
If the loading is 0.4, the coinsurance rate is 0.2, the number of units of medical care is 100, and the number of units of medical care is 1. What is the premium of this insurance? PLS HELP PLS In the diagram below, ABC DEF. Complete the statement B A. DB. AC. CD. E help mm m mn30id8u9309ikhojkri85ujj5t98ujt All of living and noliving things in a particular area Ratio Question:Florence washed 3 cars, Caragh washed 4 and Anona washed 5. Anona earned 16 more than Florence. Work out how much each earnt. You sell one December futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price falls to $1,008 per unit. What is the balance of your margin account at the end of the day? a. $3,700b. $1,800c. $2,200d. $1,500 Why can light be treated like a particle? Consider the following equation. -2x + 6 =[-2/3] + 5 g Calculate the final speed of a solid cylinder that rolls down a 5.00-m-high incline. The cylinder starts from rest, has a mass of 0.750 kg, and has a radius of 4.00 cm. hey! please help with this!!! Write all the 12 answer of measurements. If you cant do it and you think its a lot you dont have to! okay but I need this done asap! thank you so much have a amazing day!!! :) *spam? May b!* Which statement about the assassination of Martin Luther King is true?O A. He was killed by Black Panthers.O B. He was killed while marching in Chicago.O C. He was killed in a riot.O D. He was killed while trying to organize poor workers. Decide if the following sentence is grammatically CORRECT or INCORRECT.Nosotros cantarn en el coro.CorrectIncorrect What is the MEDIAN or Q2 of the data set: 24, 25, 29, 30, 31, 31, 32, 34, 34? Solve for y.3= y+7 divided by 3 Y= Can somone help me solve this Find the product of 6*12. A.362. B.62. C.56. D.418. Sound travels slowest through gases _____________________. Group of answer choices because the molecules of gas are close together because gases are air because the molecules of gas are far apart because gases have the lowest temperature WILL GIVE BRAINLIEST two dice are rolled write the sample space and number of sample points also write events and number of sample points in the event according to the given condition sum of the digits of upper faces is a prime number , sum of the digits on the upper face is a multiple of 5 , sum of the digits on the upper face is 25 and digit on the upper face at the first die is less then then the digit on the second die Anyone know the answer to this?