Which of the following would NOT have a restricted ability to enter into a contract?

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Prepare for the Wisconsin Accident and Health Insurance Exam. Study with interactive questions, including hints and explanations. Optimize your chances of success and achieve your certification!

A small employer does not have a restricted ability to enter into a contract because they typically possess full legal capacity to engage in contractual agreements. In the context of business, small employers are considered legal entities that can make contracts similar to larger businesses. They have the ability to enter into agreements regarding insurance, employee benefits, and other business matters without facing the same legal restrictions that apply to individuals who may be deemed incapable due to age, mental status, or impairment.

In contrast, a mentally ill person may be limited in their ability to enter into contracts because legal capacity can be affected by the individual's mental state. A minor, usually defined as someone under the age of 18, is considered legally incapable of entering into binding contracts unless certain exceptions apply, such as for necessities. A person under the influence of alcohol may also face challenges regarding their legal capacity to contract, as their ability to understand the terms and conditions of a contract could be impaired at the time of agreement. Thus, these categories of individuals are often subject to restrictions that prevent them from forming legally binding contracts.

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