BUSINESS FOR LAW CHAPTER 10 QUESTIONS: ILLEGAL AGREEMENTS

*10.)Giver 3 examples of contracts that injure public service.*

*-Bribery to obtain the desired results* -*Contracts to use one's influence in obtaining a public contract that by statute must be let to the lowest responsible bidder* -*To obtain pardons and paroles* -*To pay a public official more or less than the statutory salary*

*9.)Under what circumstances will a contract that may obstruct our legal processes be void?*

*Any contract that may obstruct our legal processes will be void when it has the tendency to obstruct justice even if justice is not actually obstructed.*

*2.)With regard to illegality of a contract, what is the difference between a divisible and an indivisible contract?*

*INDIVISIBLE CONTRACT*-It cannot be performed except as an entity, then the illegality of one part renders the whole contract invalid. *DIVISIBLE CONTRACT*-That the legal parts can be performed separately, the legal parts of the contract are enforceable. *If a contract is indivisible illegality in one part of it renders the whole contract invalid. If the contract is divisible the legal parts of the contract are enforceable.*

*6.)Why are most statutes making it illegal to operate certain types of businesses or professions without a license enacted?*

*Most statutes making it illegal to operate certain types of businesses or professions without a license are enacted to protect the public from incompetent operators*

*7.)If Tom contracts to sell cigarettes to Mary and her friends, who are minors, can he recover on the contract? Why not?*

*No Tom cannot recover on the contract because such a sale is prohibited.* -*A suit to collect the price would not be successful.* -*In such cases, the court will not interfere to protect either party.*

*5.)Why are noncompete contracts that have restrictions that go further or longer than necessary to protect the buyer of the business unlawful?*

*Noncompete contracts that have restrictions that go further or longer than necessary to protect the buyer of the business are unlawful *because they burden the seller and because they deprive the business community and society in general of the benefit of the activities of the seller.*

*3.)What constitutes a usurious contract?*

*USURY*-charging higher rate of interest than the law allows.

*1.) Does a contract that is void for illegality necessarily involve the commission for crime?*

-*A contract that is void because of illegality DOES NOT necessarily involve the commission of a crime.* -It may consist merely of a private wrong--the commission of a tort--such as an agreement by two people to slander a third.

*4.)Why is it that the types of transactions one observes being undertaken on Sunday do not necessarily indicate restrictions imposed by Sunday acts?*

-*The laws pertaining to Sunday contracts resulted from statutes and judicial interpretation. They vary considerably from state to state.* -Some states prohibit the sale of particular items on Sunday such as liquor. -The violators of Sunday acts are seldom prosecuted. -*The types of transactions one observes being undertaken on Sunday do not necessarily indicate restrictions imposed by these laws.*

*8.)Can a contract provision in which a party promises to never marry be enforced?*

*No-It is contrary to public policy to enter any contract the effect of which is to limit the freedom of marriage. The such contract is void*