Question 1

Which of the following is true regarding Sally's attempt to return the damaged dress?

Accepted Answer

A)   In all states Sally has the right to keep the dress and get a refund.
B)   In all states Sally must return the dress; but she has a right to a full refund.
C)   Regardless of what she does with the dress, Sally has no right to a refund in any state.
D)   In some states Sally would have an obligation of restitution to the store.
E)   In all states Sally would have an obligation of restitution to the store.F) B) and E)
G) A) and B)

Question 2

A contract overturned due to having illegal subject matter or for being illegal to perform is generally declared voidable.

Accepted Answer

A) True 
 B)False

Question 3

If a person's mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him,he has no capacity to enter into contracts; and any contract he attempts to enter into is void.

Accepted Answer

A) True 
 B)False

Question 4

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following was the result on appeal in Eric Lucier and Karen Haley v.Angela and James Williams,Cambridge Associates LTD.,and Al Vasys,the case in the text in which,after finding significant problems with their roof,the plaintiffs claimed that provisions in a home inspection contract illegally limited the liability of the defendants?

Accepted Answer

A)   The court ruled in favor of the plaintiffs on the basis that although the contract was not unconscionable, public policy was violated.
B)   The court ruled in favor of the plaintiffs on the basis that the limitation of liability provision in the contract was unconscionable and violated the public policy of the state.
C)   The court ruled in favor of the defendants on the basis that no contract of adhesion was involved and that, therefore, by definition the contract satisfied public policy.
D)   The court ruled in favor of the defendants on the basis that the plaintiffs freely entered into the contract and should, therefore, be bound to its terms.
E)   The court ruled in favor of the defendants on the basis that while the court would intervene in appropriate cases, a presumption against a finding of unconscionability exists in home inspection contracts; and the plaintiffs failed to rebut that presumption.F) All of the above
G) C) and E)

Question 6

What was the result in the Case Opener in which customers of Apple attempted to disaffirm purchases of game currency by their children?

Accepted Answer

A)   The court dismissed the lawsuit on the basis that the parents were bound by the Terms of Service and notifications of their original contracts with Apple binding them to future purchases of game currency when their passwords were used.
B)   The court dismissed the lawsuit on the basis that the parents were bound by the Terms of Service and notifications of their original contracts with Apple binding them to future purchases of game currency regardless of whether passwords were used.
C)   The court dismissed the lawsuit on the basis that no contractual agreement was needed in order for the parents to be bound in regard to purchases of game currency so long as their passwords were used.
D)   The court refused to dismiss the lawsuit because no case law was provided to prove that Apple's Terms of Service served as a contract for all subsequent transactions.
E)   The court refused to dismiss the lawsuit because as a matter of law parents cannot be required to contractually agree to future purchases by children that are unapproved by the parents.F) B) and E)
G) A) and D)

Question 7

Which of the following is true regarding an agreement to commit a crime or a tort?

Accepted Answer

A)   An agreement to commit a crime is enforceable and deemed legal so long as the substance of the agreement was deemed a crime after the agreement was entered into, but an agreement to commit a tort is unenforceable.
B)   An agreement to commit a tort is enforceable, but an agreement to commit a crime is unenforceable.
C)   An agreement to commit a crime is unenforceable, and an agreement to commit a tort is unenforceable unless a business tort is involved in which case the agreement is enforceable.
D)   An agreement to commit a crime is unenforceable, and an agreement to commit a tort is unenforceable unless a privacy tort is involved in which case the agreement is enforceable.
E)   An agreement to commit a crime is unenforceable, and an agreement to commit a tort is unenforceable.F) A) and E)
G) All of the above

Question 8

Maurice wishes to purchase a small restaurant named "Tasty Burger" in his community from Todd who tells Maurice that,while he loves the teenagers who have frequented his establishment,he is tired of flipping burgers and wants to spend more time fishing on the lake.Maurice has Todd sign a covenant not to compete prohibiting Todd from opening a restaurant within 25 miles of Tasty Burger for one year.Assuming that the covenant was drafted properly,is it likely to be enforced,and why or why not? Also,discuss arguments for and against covenants not to compete in the sale of a business.

Accepted Answer

The covenant is likely to be enforced be...

Question 9

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

Accepted Answer

A)   Independent contracts
B)   Substantive contracts
C)   Adhesion contracts
D)   Justifiable contracts
E)   Severable contractsF) C) and D)
G) B) and C)

Question 10

Which of the following is the maximum interest rate?

Accepted Answer

A)   20%
B)   15%
C)   12%
D)   10%
E)   It varies depending on the state involved.F) A) and B)
G) C) and D)

Question 11

All exculpatory clauses are unlawful.

Accepted Answer

A) True 
 B)False

Question 12

A[n] ______ occurs when a former minor does not specifically state that he affirms a contract entered into as a minor but takes some action that is consistent with intent to ratify the contract.

Accepted Answer

A)   Implied ratification
B)   Express ratification
C)   Express novation
D)   Implied novation
E)   Continued safetyF) All of the above
G) A) and B)

Question 13

Which of the following involves overly harsh or lopsided substance in an agreement?

Accepted Answer

A)   Substantive unconscionability.
B)   Adhesion conscionability.
C)   Procedural unconscionability.
D)   Exculpatory clauses.
E)   An in pari delicto agreement.F) A) and B)
G) A) and E)

Question 14

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed _____.

Accepted Answer

A)   Executed
B)   Enforceable without a fine
C)   Illegal and unenforceable
D)   Enforceable but with a fine
E)   UsuryF) B) and D)
G) B) and C)

Question 15

In the law,when both parties are equally responsible for an illegal agreement,it is known as ____.

Accepted Answer

A)   In pari delicto
B)   Procedurally unconscionable
C)   An adhesion contract
D)   A res ipsa contract
E)   A stare decisis contractF) A) and E)
G) D) and E)

Question 16

Which of the following occurs when a person reaches the age of majority and states,either orally or in writing,that he or she intends to be bound by the contract entered in to as a minor?

Accepted Answer

A)   Implied ratification
B)   Express ratification
C)   Express novation
D)   Implied novation
E)   Express ratification if the statement is in writing but nothing if the statement is only oralF) D) and E)
G) C) and D)

Question 17

The term ______ refers to the fact that an agreement is so unfair that it is void of conscience.

Accepted Answer

A)   Unreasonable
B)   Outrageous
C)   Unconscionable
D)   Unrealistic
E)   UnbelievableF) A) and B)
G) B) and D)

Question 18

What type of agreement did Janice have the customer with green hair sign?

Accepted Answer

A)   Adhesion
B)   Exculpatory
C)   Procedural
D)   Substantive
E)   MalfeasanceF) None of the above
G) A) and E)

Question 19

How many states engage in at least some regulation of gambling?

Accepted Answer

A)   50
B)   47
C)   40
D)   35
E)   10F) A) and D)
G) D) and E)

Question 20

Which of the following would be a possible defense to Bobby's contract involving chores based upon the size of the print on the back of the contract?

Accepted Answer

A)   Substantive unconscionability
B)   Unclear drafting
C)   Procedural unconscionability
D)   Outrageous wording
E)   Adhesion conscionabilityF) A) and C)
G) All of the above

Exam 16: Capacity and Illegality

The term ______ refers to the fact that an agreement is so unfair that it is void of conscience.

Correct Answer
verified

Which of the following involves overly harsh or lopsided substance in an agreement?

Correct Answer
verified

What was the result in the Case Opener in which customers of Apple attempted to disaffirm purchases of game currency by their children?

Correct Answer
verified

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed _____.

Correct Answer
verified

In the law,when both parties are equally responsible for an illegal agreement,it is known as ____.

Correct Answer
verified

All exculpatory clauses are unlawful.

Correct Answer
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What type of agreement did Janice have the customer with green hair sign?

Correct Answer
verified

A[n] ______ occurs when a former minor does not specifically state that he affirms a contract entered into as a minor but takes some action that is consistent with intent to ratify the contract.

Correct Answer
verified

How many states engage in at least some regulation of gambling?

Correct Answer
verified

Which of the following is true regarding Sally's attempt to return the damaged dress?

Correct Answer
verified

Which of the following occurs when a person reaches the age of majority and states,either orally or in writing,that he or she intends to be bound by the contract entered in to as a minor?

Correct Answer
verified

A contract overturned due to having illegal subject matter or for being illegal to perform is generally declared voidable.

Correct Answer
verified

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

Correct Answer
verified

Which of the following would be a possible defense to Bobby's contract involving chores based upon the size of the print on the back of the contract?

Correct Answer
verified

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Correct Answer
verified

If a person's mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him,he has no capacity to enter into contracts; and any contract he attempts to enter into is void.

Correct Answer
verified

Correct Answer
verified
The covenant is likely to be enforced be...
View Answer

Correct Answer
verified

Which of the following is the maximum interest rate?

Correct Answer
verified

Which of the following is true regarding an agreement to commit a crime or a tort?

Correct Answer
verified

Exam 16: Capacity and Illegality

The term ______ refers to the fact that an agreement is so unfair that it is void of conscience.

Correct AnswerverifiedShow Answer

Which of the following involves overly harsh or lopsided substance in an agreement?

Correct AnswerverifiedShow Answer

What was the result in the Case Opener in which customers of Apple attempted to disaffirm purchases of game currency by their children?

Correct AnswerverifiedShow Answer

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed _____.

Correct AnswerverifiedShow Answer

In the law,when both parties are equally responsible for an illegal agreement,it is known as ____.

Correct AnswerverifiedShow Answer

All exculpatory clauses are unlawful.

Correct AnswerverifiedShow Answer

What type of agreement did Janice have the customer with green hair sign?

Correct AnswerverifiedShow Answer

A[n] ______ occurs when a former minor does not specifically state that he affirms a contract entered into as a minor but takes some action that is consistent with intent to ratify the contract.

Correct AnswerverifiedShow Answer

How many states engage in at least some regulation of gambling?

Correct AnswerverifiedShow Answer

Which of the following is true regarding Sally's attempt to return the damaged dress?

Correct AnswerverifiedShow Answer

Which of the following occurs when a person reaches the age of majority and states,either orally or in writing,that he or she intends to be bound by the contract entered in to as a minor?

Correct AnswerverifiedShow Answer

A contract overturned due to having illegal subject matter or for being illegal to perform is generally declared voidable.

Correct AnswerverifiedShow Answer

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

Correct AnswerverifiedShow Answer

Which of the following would be a possible defense to Bobby's contract involving chores based upon the size of the print on the back of the contract?

Correct AnswerverifiedShow Answer

For purposes of determining capacity,intoxicated persons include those under the influence of alcohol,but not drugs.

Correct AnswerverifiedShow Answer

If a person's mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him,he has no capacity to enter into contracts; and any contract he attempts to enter into is void.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe covenant is likely to be enforced be...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the maximum interest rate?

Correct AnswerverifiedShow Answer

Which of the following is true regarding an agreement to commit a crime or a tort?

Correct AnswerverifiedShow Answer

Correct Answer
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The covenant is likely to be enforced be...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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