Question 1

A lender who makes a loan at an interest rate above the lawful maximum commits usury.

Accepted Answer

A) True 
 B)False

Question 2

When a statute protects a certain class of people, a member of that class can enforce a contract in violation of that statute.

Accepted Answer

A) True 
 B)False

Question 3

For a contract to be valid and enforceable, it must be formed for a legal purpose.

Accepted Answer

A) True 
 B)False

Question 4

Rosa signs a covenant not to compete with her employer, Sales Corporation. A court decides that the covenant is unreasonably restrictive. Most likely, the court will

Accepted Answer

A)   enforce it.
B)   evaluate its effect over time.
C)   reform it to prevent any undue burden.
D)   refuse to enforce it unless the employer pays additional consideration.E) A) and B)
F) A) and C)

Question 5

Members of certain professions are required to have licenses. Most likely, the requirements to obtain a license do not include

Accepted Answer

A)   extensive schooling and examinations.
B)   good character.
C)   a fee.
D)   an ongoing business.E) A) and D)
F) None of the above

Question 6

A contract entered into with an unlicensed party is always unenforceable.

Accepted Answer

A) True 
 B)False

Question 7

Generally, licenses of certain professions

Accepted Answer

A)   provide a means of regulating certain businesses.
B)   provide a means of taxing certain businesses.
C)   protect the public against actions that threaten the general welfare.
D)   all of the choices.E) A) and B)
F) C) and D)

Question 8

In some states, the lack of a license in certain occupations bars the enforcement of work-related contracts.

Accepted Answer

A) True 
 B)False

Question 9

A covenant not to compete

Accepted Answer

A)   is usurious.
B)   protects the public from unauthorized practitioners of certain professions.
C)   is a promise to refrain from competing in business with another.
D)   protects the public against actions that threaten the general welfare.E) B) and C)
F) A) and D)

Question 10

Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere. With respect to the amount of the payments, Boz can recover

Accepted Answer

A)   all of it.
B)   none of it.
C)   only as much as Colin has not spent.
D)   only as much as Colin has spent.E) B) and D)
F) A) and D)

Question 11

To avoid liability for negligence, Mart Discount Stores can normally obtain a court order to enforce

Accepted Answer

A)   a covenant not to compete.
B)   an adhesion contract.
C)   an exculpatory clause.
D)   none of the choices.E) C) and D)
F) None of the above

Question 12

A contract to commit a crime is

Accepted Answer

A)   enforceable if the parties entered into the contract after the statute.
B)   enforceable if the parties entered into the contract before the statute.
C)   enforceable if the contract does not negatively affect society.
D)   unenforceable.E) B) and D)
F) All of the above

Exam 12: The Legality of Agreements

When a statute protects a certain class of people, a member of that class can enforce a contract in violation of that statute.

Correct Answer
verified

Generally, licenses of certain professions

Correct Answer
verified

A contract entered into with an unlicensed party is always unenforceable.

Correct Answer
verified

In some states, the lack of a license in certain occupations bars the enforcement of work-related contracts.

Correct Answer
verified

To avoid liability for negligence, Mart Discount Stores can normally obtain a court order to enforce

Correct Answer
verified

Members of certain professions are required to have licenses. Most likely, the requirements to obtain a license do not include

Correct Answer
verified

Rosa signs a covenant not to compete with her employer, Sales Corporation. A court decides that the covenant is unreasonably restrictive. Most likely, the court will

Correct Answer
verified

For a contract to be valid and enforceable, it must be formed for a legal purpose.

Correct Answer
verified

A contract to commit a crime is

Correct Answer
verified

A lender who makes a loan at an interest rate above the lawful maximum commits usury.

Correct Answer
verified

A covenant not to compete

Correct Answer
verified

Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere. With respect to the amount of the payments, Boz can recover

Correct Answer
verified

Exam 12: The Legality of Agreements

When a statute protects a certain class of people, a member of that class can enforce a contract in violation of that statute.

Correct AnswerverifiedShow Answer

Generally, licenses of certain professions

Correct AnswerverifiedShow Answer

A contract entered into with an unlicensed party is always unenforceable.

Correct AnswerverifiedShow Answer

In some states, the lack of a license in certain occupations bars the enforcement of work-related contracts.

Correct AnswerverifiedShow Answer

To avoid liability for negligence, Mart Discount Stores can normally obtain a court order to enforce

Correct AnswerverifiedShow Answer

Members of certain professions are required to have licenses. Most likely, the requirements to obtain a license do not include

Correct AnswerverifiedShow Answer

Rosa signs a covenant not to compete with her employer, Sales Corporation. A court decides that the covenant is unreasonably restrictive. Most likely, the court will

Correct AnswerverifiedShow Answer

For a contract to be valid and enforceable, it must be formed for a legal purpose.

Correct AnswerverifiedShow Answer

A contract to commit a crime is

Correct AnswerverifiedShow Answer

A lender who makes a loan at an interest rate above the lawful maximum commits usury.

Correct AnswerverifiedShow Answer

A covenant not to compete

Correct AnswerverifiedShow Answer

Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere. With respect to the amount of the payments, Boz can recover

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified