ARE 18 Chapter 16 Connect Answers

which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor?

emancipation

usury occurs when a party gives a loan at an interest rate _____ the legal _____

exceeding, maximum

depending on the nature and extent of the mental or physical defect, a person may have either no capacity, the complete inability to enter into contracts, or limited capacity, the ability to form only ____ contracts

voidable

which of the following contracts requires complete performance by both parties, even if it appears to contain multiple parts?

indivisible

when an agreement is deemed illegal, courts will usually label it _____

void

an express ratification occurs when, after reaching the age of majority, the person states ____ or _____ that he or she intends to be bound by the contract entered into as a minor

orally, writing

a restrictive covenenat made in conjunction with the _____ of an ongoing business is enforceable

sale

which of the following terms refers to a contract that may have both illegal and legal portions, allowing a court to void the illegal portions and enforce the rest?

severable

which of the following terms refers to an agreement that is overly harsh or lopsided?

substantive unconscionability

in make states, parents may be liable when a child causes harm if it can be proved that the parent failed to properly ____ the child, thereby subjecting others to a(n) _____ risk of harm

supervise, unreasonable

a contract overturned for illegal subject matter or for being illegal to perform is generally declared _____

void

if no exception allows a usurious loan, a few states declare all usurious loans _____, which means the lender is not entitled to recover either interest or principal from the borrower

void

minors may enter into only ____ contracts

voidable

a(n) _____ contract must be enforced or rejected in its entirety

indivisible

as a general rule, covenants not to compete in employment contracts are _____

permissible

to facilitate ____ transactions, most states with usury statutes allow corporations to borrow at rates exceeding the maximum

business

when an intoxicated person becomes sober, a contract he or she made while intoxicated can be _____ or _____

disaffirmed, ratified

a minor would be most likely able to disaffirm which of the following contracts?

a contract for stereo equipment

which of the following is a correct statement regarding a minor's obligations on disaffirmance?

a minor's obligations on disaffirmance vary from state to state

which of the following businesses would most likely be able to enforce an exculpatory clause

a nightclub

a(n) _____ contract is an agreement presented on a take it or leave it basis

adhesion

agreements that restrain trade, called ____ agreements, are viewed as being harmful to consumers and against public policy

anticompetitive

public policy involves _____

both the government's concern for its citizens and the beliefs people hold regarding the proper subject of business transactions

under ___ law, unconscionable contracts are unenforceable

common

when a court determines a restraint on trade is reasonable and the restraint is part of a subordinate or ancillary, clause in a contract, the restoration is typically allowed. Such restraints are known as covenants not to _____

compete

gambling refers to agreements in which parties pay ____ for the chance or opportunity to obtain an amount of money or property

consideration

capacity is an element of a legally binding _____

contract

technically, a minor can _____ a contract for a necessary, but upon doing so, the minor is still liable for the _____ value of the necessary

disaffirm, reasonable

according to the legal principle of in pari delicto, neither contracting party can _____ the subject agreement, and neither is entitled to ______

enforce, recovery

which of the following terms refers to a clause that releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered?

exculpatory

which of the following is a type of legal capacity a person suffering from a mental illness may have, depending on the nature and extend of their deficiency?

full

a recognized purpose of licensing statutes is government protection of the public's ______, _______, and ______

health, safety, welfare

which of the following is a correct statement regarding a minor's power to disaffirm or void a contract?

if a minor chooses to disaffirm a contract, he or she must void the entire contract

as a general rule, when an agreement is deemed illegal, courts will usually label it void, meaning neither party can enforce the agreement, and neither is entitled to recovery. one exception to this rule is when justifiable _____ of facts leaves one party unaware of a provision of the agreement that would make it illegal

ignorance

in terms of the effect of entering into an agreement with a person who is unlawfully unlicensed, if the licensing statute is intended to protect the public's health, safety, and welfare, the subject agreement is typically deemed

illegal, unenforceable

according to the restatement second of contracts, if a court as a matter of law finds a contract or any clause of the contract to have been unconscionable at the time ti was made, the court may do all but which of the following?

impose statutory sanctions on the party who drafted the contract

another term for incapacity is ____

incompetence

if declaring parts of a contract void would substantially alter it, such a contract is ______ in such a situation, a court must either enforce or reject the contract in its entirety

indivisible

adhesion contracts are _____

legal

which of the following states allows casino gambling

louisiana

an implied ratification occurs when a former minor takes some action after reaching the age of _____ consistent with ______ to ratify a contract

majority, intent

once a person reaches the age of ____, he or she may raft contracts made as a(n) _____

majority, minor

which of the following is a correct statement regarding minors and contracts?

minors may enter only into voidable contracts

in most states, ____ are liable for a minor's personal torts

minors, another their parents

severable contracts contain ____ parts that can each be performed separately and for which separate ____ is offered

multiple, consideration

sabbath laws typically do not apply to contracts for obtaining ____, including prescription medicine, food, and anything else related to health or survival

necessities

incapacity is the possession of a(n) _____of _____ defect that prevents a natural person from being able to enter into a legally binding contract

physical, mental

if no exception allows a usurious loan, a few states declare all usurious loans void, which means the lender is not entitled to recover either ____ or _____ from the borrower

principal, interest

there are two main types of unconscionable agreements: _____ and _____

procedural, substantive

an agreement agains _____ policy may not be illegal per se, but is nevertheless unenforceable

public

businesses closely linked to the _____ interest cannot enforce exculpatory clauses

public

a contract cannot be for an illegal ____ or require an illegal ____ for performance

purpose, act

when a court determines a restraint on trade is ____ and the restraint is part of a ______ or ancillary cause in a contract, the restraint is typically allowed

reasonable, subordinate

an exculpatory clause releases one of the contracting parties form all liability _____

regardless of who is at fault

which of the following is a correct statement regarding a competent party's recourse against a minor who disaffirms when the consideration the minor received in damaged or destroyed?

the competent party has no recourse against the minor

heavily one sided contracts are known as ____ agreements

unconscionable