LAW 3800 Ch 11 SB

Section ___ of the Uniform Commercial Code addresses the enforcement of an unconscionable contract.

2-302

Which of the following is an accurate statement regarding the restrictive covenants that involve employment contracts?

A covenant not to compete in employment contracts is legal in most states.

Which of the following is a recognized exception to the general rule that an illegal agreement is void?

A member of a specific, protected class is involved in an agreement that contradicts a statute intended to protect the specific class.

Which of the following is an accurate statement regarding a minor's right to disaffirm a contract?

A minor has the right to disaffirm a contract until a reasonable time after reaching the age of majority.

Which of the following is not an accurate statement regarding the contractual capacity of a mentally incapacitated person?

A person has full capacity to enter into a contract if she suffers from a mental deficiency that prevents her from understanding the transaction.

Which of the following is an accurate statement regarding the effect of a minor's misrepresentation of age has on his or her right to disaffirm a contract?

According to the majority rule, it does not affect the minor's right to disaffirm the contract.

Which of the following is an accurate statement regarding adhesion contracts?

Adhesion contracts usually do not allow for debate regarding the agreement.

The states most notable for casino gambling include all but which of the following?

Alaska

Which of the following is an accurate statement regarding the parental liability for the contracts entered into by their minor children?

As a general rule, parents are not liable for the contracts entered into by their minor children.

Which of the following is a correct statement regarding the enforcement of a contract with a person who is not lawfully licensed?

In a "no license, no contract" state, no agreement with an unlicensed professional is enforceable.

Which of the following is an accurate statement regarding parental liability for the torts of their minor children?

In most states, parents are not liable for the torts of their minor children.

Identify the effect of an agreement being deemed illegal.

It becomes void

Which of the following is not an accurate statement regarding the contractual capacity of an intoxicated person?

Most states follow the Uniform Contracts Code, which addresses the effect of intoxication on contractual capacity.

Which of the following is an accurate statement regarding Sabbath laws?

Most states with Sabbath laws allow the performance of charity work on Sundays.

Which of the following is an accurate statement regarding parental liability for the necessaries of their children?

Parents have a legal duty to provide their children with the basic necessities of life.

___ refers to an agreement in which both parties pay consideration for the chance to obtain money or property.

gambling

Which of the following is an accurate statement regarding a contract that is against generally accepted public policy?

Such a contract is unenforceable.

Which of the following is an accurate statement regarding a minor's right to disaffirm a contract for necessaries?

Technically, a minor can disaffirm a contract for necessaries, but the minor is liable for the reasonable value of the necessaries.

Which of the following is not a possible legal outcome when a usurious loan is made?

The court will declare the usurious loan void and award the debtor an equity interest in the subject lending institution.

According to the majority of jurisdictions, which of the following is an accurate statement regarding a minor's right to disaffirm a contract when the consideration he or she received has been damaged or destroyed?

The minor can disaffirm the contract, and the other party has no recourse.

Which of the following is an accurate statement regarding the legality requirement of contract enforcement?

To be enforceable, a contract must both have a legal exchange as its subject and be able to be performed legally.

True or False: An exception to the voiding of an illegal agreement can occur when there is a justifiable ignorance of facts.

True

___ occurs when a party gives a loan at an interest rate exceeding the legal maximum.

Usury

Which of the following organizations would be least successful in convincing a court to enforce an exculpatory clause in its favor?

a bank

As a general rule in most states, which of the following contracts is a minor allowed to disaffirm?

a contract for joining a school club

Which of the following is a recognized exception to usury law?

a small loan to a party who cannot obtain a needed loan at the statutory maximum interest rate

Which of the following parties would be most likely to convince a court to enforce an exculpatory clause in its favor?

an amusement park

A contract in restraint of trade is also known as a(n) ___ agreement.

anticompetitive

A person who has the legal ___ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and therefore will presumably be able to understand how to comply with the terms of the agreement

capacity

___ typically occurs when a minor moves out of his or her parent's house and begins supporting himself or herself.

emancipation

A(n) ___ ratification occurs when, after reaching the right age of majority, a person states that he or she intends to be bound by a contract.

express

Which of the following is a main purpose of licensing statutes?

government regulation of specific industries

The context of a contract for a necessary, which of the following is not a necessary?

high-speed internet

An agreement to commit a crime or tort is ___

illegal and unenforceable

A(n) ___ ratification occurs when a former minor takes some action after reaching the age of majority that is consistent with an intent to ratify the contract.

implied

When both parties in an illegal agreement are equally responsible for the illegal agreement, the parties are said to be ___

in pari delicto

___ is some sort of mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.

incapacity

A(n) ___ contract requires complete performance by both parties, even it if appears as though the contract contains multiple parts.

indivisible

One of the oldest limitations on capacity is the ability of ___ to enter into only voidable contracts.

minors

Which of the following is one of the varieties of restrictive covenants?

noncompetition in employment

___ refers to the unconscionability that derives from the process of making a contract.

procedural unconscionability

If a person who has reached the age of majority legally affirms a contract made as a minor, he or she is said to have ___ the contract.

ratified

A covenant not to compete is also known as a(n) __ covenant.

restricitive

___ laws are also known as blue laws.

sabbath

A(n) ___ contract contains multiple parts that can each be performed separately.

severable

Public policy focuses on what is in the best interest of ___

society

An agreement in which one party has little to no legal recourse is an example of ___ unconscionability.

substantive

In the context of covenants not to compete involving the sale of ongoing business, "ongoing" refers to all except which of the following?

the business is merging with a larger business

The patently unfair nature of an exculpatory clause is closely tied to the idea of ___ contracts.

unconscionable

There are times when agreements are so one-sided, or heavy-handed against one party, that courts will not make the harmed, innocent person fulfill his or her contractual duties. These heavily one-sided agreements are known as ______ agreements.

unconscionable

Generally, when an agreement is deemed illegal, courts will label the contract ___

void