Question 1

Which of the following is a possible example of procedural unconscionability?

Accepted Answer

A)   A clause excluding a seller's liability for consequential damages from a defective good.
B)   A clause imposing a penalty for failure to deliver the goods on time.
C)   A high price term in a contract.
D)   A fine-print price term in a contract.E) All of the above
F) A) and B)

Question 2

Describe the three criteria that need to be fulfilled to enforcing a noncompetition clause.

Accepted Answer

The three criteria that need to be fulfi...

Question 3

When a court says that an agreement is illegal,it most likely means that the agreement:

Accepted Answer

A)   has not mentioned a time period for which the agreement is valid.
B)   does not identify the parties involved in the agreement.
C)   is related to buying and selling of trade secrets.
D)   violates public policy.E) B) and D)
F) All of the above

Question 4

Mr.Green enters into a contract with Ms.White to purchase legal ingredients used to perfect an illegal marijuana manufacturing operation.Ms.White refuses to pay the amount owed to Mr.Green and he sues in court.What is the court likely to do?

Accepted Answer

A)   Recognize the contract but only allow 50% economic recovery for Mr.Green since his products were used to produce illegal items.
B)   The court will likely not enforce Mr.Green's contract since it was part of an illegal action.
C)   The court will likely enforce the agreement if Mr.Green registered the contract with the Secretary of State's office.
D)   The court will enforce the agreement if Mr.Green has lived in the forum state longer than Ms.White.E) B) and C)
F) A) and D)

Question 5

Even if both parties consent to an agreement,if a court finds the agreement illegal then it will not enforce it.

Accepted Answer

A) True 
 B)False

Question 6

A noncompetition clause is also known as a "liability waiver."

Accepted Answer

A) True 
 B)False

Question 7

One example of procedural unconscionability is the use of "fine print" in stating a contractual provision.

Accepted Answer

A) True 
 B)False

Question 8

Where no separate consideration is exchanged for the legal and illegal parts of an agreement,the agreement is said to be _____.

Accepted Answer

A)   unconscionable
B)   rescind
C)   indivisible
D)   adhesiveE) A) and C)
F) B) and C)

Question 9

A court has held that a certain contract violates public policy.This contract will be treated the same as a(n) :

Accepted Answer

A)   illegal contract.
B)   contract between a minor and an adult.
C)   private contract.
D)   adhesive contract.E) B) and D)
F) All of the above

Question 10

An agreement can be illegal even if no statute specifically states that such an agreement is illegal.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is most true regarding noncompetition clauses in contracts?

Accepted Answer

A)   Such clauses are not used during employment contracts.
B)   If they have a legitimate business purpose,such clauses will be enforced.
C)   Such clauses are enforced only for protecting the environment and conserving resources.
D)   Such clauses help in promoting free trade.E) A) and C)
F) B) and C)

Question 12

Roger and Erick make a bet concerning whether a certain rich citizen will die within the next year.Neither party has any economic interest in this person's fate,except for that created by the bet.This agreement is:

Accepted Answer

A)   unenforceable if the statutes prohibit wagering agreements.
B)   unenforceable because it tends toward the commission of a crime.
C)   unconscionable because it contemplates the destruction of life.
D)   a valid and enforceable risk-allocation agreement.E) A) and B)
F) A) and C)

Question 13

In an employment contract,the noncompetition clause might be the only part of the contract:

Accepted Answer

A)   that the parties put in writing.
B)   that would be valid.
C)   that would be unenforceable.
D)   that would be illegal.E) A) and B)
F) A) and C)

Question 14

A contract to commit a serious crime is a legal contract.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true regarding noncompetition clauses in the employment contracts?

Accepted Answer

A)   These clauses are illegal.
B)   Employments contracts with these clauses are voidable.
C)   These clauses put postemployment restrictions on the employees.
D)   These clause need to be ratified by the employer.E) A) and B)
F) B) and C)

Question 16

If part of an agreement is legal and part is illegal,the courts will:

Accepted Answer

A)   declare the entire agreement to be void.
B)   ask both the parties to ratify the agreement before considering it for evaluation.
C)   enforce the legal part so long as it is possible to separate the two parts.
D)   impose punitive damages on both the parties.E) None of the above
F) A) and B)

Question 17

The Uniform Commercial Code (UCC)allows the court to modify or limit the enforcement of a provision in a contract that is found to be unconscionable.

Accepted Answer

A) True 
 B)False

Question 18

An agreement that unreasonably tends to interfere with family relationships will be considered _____.

Accepted Answer

A)   implied-in-fact
B)   valid
C)   exculpatory
D)   illegalE) All of the above
F) B) and D)

Question 19

Public policy never changes and is constant for judges to rule on.

Accepted Answer

A) True 
 B)False

Question 20

An agreement that violates legislative and court-made rules and creates threat to public policy shall be denied enforcement on the ground of illegality.

Accepted Answer

A) True 
 B)False

Exam 15: Illegality

Even if both parties consent to an agreement,if a court finds the agreement illegal then it will not enforce it.

Correct AnswerverifiedShow Answer

Public policy never changes and is constant for judges to rule on.

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Which of the following statements is true regarding noncompetition clauses in the employment contracts?

Correct AnswerverifiedShow Answer

A noncompetition clause is also known as a "liability waiver."

Correct AnswerverifiedShow Answer

One example of procedural unconscionability is the use of "fine print" in stating a contractual provision.

Correct AnswerverifiedShow Answer

Mr.Green enters into a contract with Ms.White to purchase legal ingredients used to perfect an illegal marijuana manufacturing operation.Ms.White refuses to pay the amount owed to Mr.Green and he sues in court.What is the court likely to do?

Correct AnswerverifiedShow Answer

If part of an agreement is legal and part is illegal,the courts will:

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An agreement that violates legislative and court-made rules and creates threat to public policy shall be denied enforcement on the ground of illegality.

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Describe the three criteria that need to be fulfilled to enforcing a noncompetition clause.

Correct AnswerverifiedThe three criteria that need to be fulfi...View AnswerShow Answer

In an employment contract,the noncompetition clause might be the only part of the contract:

Correct AnswerverifiedShow Answer

Which of the following is a possible example of procedural unconscionability?

Correct AnswerverifiedShow Answer

An agreement can be illegal even if no statute specifically states that such an agreement is illegal.

Correct AnswerverifiedShow Answer

An agreement that unreasonably tends to interfere with family relationships will be considered _____.

Correct AnswerverifiedShow Answer

Roger and Erick make a bet concerning whether a certain rich citizen will die within the next year.Neither party has any economic interest in this person's fate,except for that created by the bet.This agreement is:

Correct AnswerverifiedShow Answer

A court has held that a certain contract violates public policy.This contract will be treated the same as a(n) :

Correct AnswerverifiedShow Answer

Which of the following is most true regarding noncompetition clauses in contracts?

Correct AnswerverifiedShow Answer

A contract to commit a serious crime is a legal contract.

Correct AnswerverifiedShow Answer

When a court says that an agreement is illegal,it most likely means that the agreement:

Correct AnswerverifiedShow Answer

The Uniform Commercial Code (UCC)allows the court to modify or limit the enforcement of a provision in a contract that is found to be unconscionable.

Correct AnswerverifiedShow Answer

Where no separate consideration is exchanged for the legal and illegal parts of an agreement,the agreement is said to be _____.

Correct AnswerverifiedShow Answer

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The three criteria that need to be fulfi...
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