Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is

A. voidable if Fay has a lucid interval at the time of contracting.
B. voidable if Fay lacks the capacity to comprehend the consequences.
C. voidable if the other party does not realize that Fay is incompetent.
D. unavoidable.


Answer: B

Business

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Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary

allowances of $34,000 and $26,000, respectively; and the remainder to be divided equally. How much of the net income of $120,000 is allocated to Xavier? a. $59,000 b. $61,000 c. $49,000 d. $44,000

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The relationship between sample size and sample accuracy is that as sample size increases:

A) sample error decreases B) sample error increases C) sample error remains constant D) sample error becomes unitary E) none of the above; sample size does not affect sample accuracy

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In a case in which a buyer purchases goods from a thief who has stolen them, the purchaser does not acquire title to the goods

Indicate whether the statement is true or false

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Techno is planning a security offering under Regulation D, Rule 506 . Under this rule, Techno can

a. offer up to $5 million in securities over 12 months. b. offer up to $1 million in securities over 12 months. c. can offer an unlimited amount of securities. d. can only offer an amount equal to twice its initial capitalization.

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