subject
Business, 05.05.2020 08:34 skatingflower

A car dealership sells a vehicle to Tony and Tony is 16 years old. Tony takes out a loan of $10,000 to purchase the vehicle. Tony’s payments are $250.00 per month. For 6 months, Tony regularly makes the payments of $250.00 per month. After 6 months, Tony loses his job. He is 16 ½ years old. He can no longer make the payments for the vehicle. Tony turns in the vehicle to the car dealership telling them that he cannot afford the vehicle anymore. The following is true: a) Tony is liable for the remainder of the loan because he ratified the contract by making payments for six (6) months on the loan. b) The contract is voidable because Tony is a minor and the disaffirm the contract within a reasonable time. c) The contract is NOT voidable because Tony drove the truck for 6 months and his actions serve to ratify the agreement he made with the car dealership. d) The contract was void from the beginning and unenforceable because Tony is a minor and the car dealership should have known better.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 08:00
Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?
Answers: 1
question
Business, 22.06.2019 11:30
Which of the following statements about cash basis accounting is true? a. it is more complicated than accrual basis accounting. b. the irs allows all types of corporations to use it. c. it follows gaap standards. d. it ensures the company always knows how much cash flow it has.
Answers: 2
question
Business, 23.06.2019 04:40
Which qualifications have an importance level higher than 60 for a career as a customer service representative? select all that apply operation monitoring mathematics service orientation reading comprehension persuasion learning strategies speaking
Answers: 1
question
Business, 23.06.2019 09:00
You tour a company and notice that employees all seem to have a common goal and understanding of procedures. what would be the contributing factor for this?
Answers: 3
You know the right answer?
A car dealership sells a vehicle to Tony and Tony is 16 years old. Tony takes out a loan of $10,000...
Questions
question
Mathematics, 21.01.2021 01:00
question
Mathematics, 21.01.2021 01:00
question
Mathematics, 21.01.2021 01:00
Questions on the website: 13722360