1. Sam, a minor, bought a yacht from Marine Co. Inc. Under the terms of the contract, Sam agreed to make monthly payments. About four months after reaching his 18th birthday, Sam became bored with boating and wanted to disaffirm the contract. He had made five (5) payments up to the point that he decided to rescind (cancel). Can he disaffirm the contract?

Sam could not disaffirm because the yacht was a necessity.

Sam, most likely, could not disaffirm because he ratified the contract.

Sam could not disaffirm because the yacht was now used and worth much less than when he bought it.

Sam could disaffirm the contract.

2. Al offers to sell his car to Marge for $5,000.00. Marge says, " I'll buy your car if I can come up with the funds." Marge's response is an example of an illusory promise.

True

False

3. The offeror can state how the offeree must accept the offer. If the offeror specifies how the offer must be accepted, then the offeree must accept in the manner specified. If no manner of acceptance is stated, then under the Uniform Commercial Code, the offeree can accept in any reasonable way.

True

False

4. A contract between an adult and a minor that cannot be enforced by the adult due to the minor's lack of capacity can still be enforced against the adult if the minor elects to do so.

True

False

5. The common law mailbox rule states that an acceptance is effective upon dispatch if mailing the acceptance was an authorized manner of acceptance. (The authorization could have been expressly or impliedly authorized by the offeror.)

True

False