Question 1

Noncompete agreements for Internet-based jobs have the same limitations in determining what is reasonable as to time and place restrictions as other types of jobs.

Accepted Answer

A) True 
 B)False

Question 2

An agreement to refrain from a particular trade,profession,or business is enforceable if two requirements are met: that it protects a property interest of the promisee and that the restraint is no more extensive than is reasonably necessary to protect that interest.

Accepted Answer

A) True 
 B)False

Question 3

Carl and Rob are both engaged in road construction work.They know that several jobs are going to be up for public bids,and agree between themselves that Carl will bid on one job and Rob will bid on the other,so that they both have work for the summer.When the bids are opened,Carl realizes that Rob has bid on both jobs.Rob is awarded both contracts.If Carl now wants to sue Rob for breach of contract:

Accepted Answer

A)  Carl would probably win on the basis of promissory estoppel since he has detrimentally relied upon Rob's representation that he would not bid. 
B)  the court will likely award Carl damages since Carl is less at fault than Rob. 
C)  the agreement is in violation of public policy and will not be enforced by the courts. 
D)  the agreement obstructs the administration of justice and will not be enforced by the courts. 
A)  Carl would probably win on the basis of promissory estoppel since he has detrimentally relied upon Rob's representation that he would not bid. 
B)  the court will likely award Carl damages since Carl is less at fault than Rob. 
C)  the agreement is in violation of public policy and will not be enforced by the courts. 
D)  the agreement obstructs the administration of justice and will not be enforced by the courts.

Question 4

Stuart promises to act as a guide and fishing instructor on a trip for a group of visiting dignitaries.The dignitaries agree to pay him $200 for his services.Stuart completes his duties,but when they discover that Stuart does not have a fishing license,they refuse to pay him.The agreement between Stuart and the dignitaries is an illegal one,which is not enforceable.

Accepted Answer

A) True 
 B)False

Question 5

Courts usually will require evidence of what factors for a transaction to be usurious?

Accepted Answer

For a transaction to be usurious,courts

Question 6

The courts will enforce an agreement declared illegal by statute.

Accepted Answer

A) True 
 B)False

Question 7

Edmund,an engineer,is working on a new design for some highly technical equipment which Techgo,Inc.hopes to market within the next five years.The employment agreement between Edmund and Techgo,Inc.states that Edmund will not go to work for another company in the same business for a period of two years after termination of his employment with Techgo,Inc.This agreement is void and unenforceable,because it would make it difficult for Edmund to find other employment.

Accepted Answer

A) True 
 B)False

Question 8

A contract prepared on a standard form and offering terms on a take-it-or-leave-it basis is called:

Accepted Answer

A)  exculpatory. 
B)  a usurious contract. 
C)  an illegal restraint of trade. 
D)  an adhesion contract. 
A)  exculpatory. 
B)  a usurious contract. 
C)  an illegal restraint of trade. 
D)  an adhesion contract.

Question 9

The usual means of enforcing an agreement prohibiting an employee from competing in a described territory for a stated period of time is by injunction.

Accepted Answer

A) True 
 B)False

Question 10

The courts readily enforce a covenant not to compete during the period of employment.

Accepted Answer

A) True 
 B)False

Question 11

Sarah is working hard on the mayoral campaign of Timothy.She thinks that just a few more votes could win the election,so she promises to pay her friend Violet $50 to register and vote.Violet does so,but Timothy loses the election,and Sarah now refuses to pay.The agreement is:

Accepted Answer

A)  enforceable. 
B)  unenforceable and opposed to public policy. 
C)  one to obstruct the administration of justice. 
D)  an unconscionable contract covered by the UCC. 
A)  enforceable. 
B)  unenforceable and opposed to public policy. 
C)  one to obstruct the administration of justice. 
D)  an unconscionable contract covered by the UCC.

Question 12

R&R,Inc.entered into a contract with Scott,an agent,under the terms of which Scott would receive $20,000 if he stole trade secrets from the leading competitor of R&R.Scott performed his end of the agreement by delivering the trade secrets.If R&R now refuses to pay Scott for his services,Scott:

Accepted Answer

A)  may recover based upon the express contract of the parties. 
B)  may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of R&R. 
C)  will be unable to recover,because this is an illegal contract. 
D)  will be able to recover based upon promissory estoppel,because he has detrimentally relied upon the promises made by R&R. 
A)  may recover based upon the express contract of the parties. 
B)  may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of R&R. 
C)  will be unable to recover,because this is an illegal contract. 
D)  will be able to recover based upon promissory estoppel,because he has detrimentally relied upon the promises made by R&R.

Question 13

Which of the following would be considered a valid and legally enforceable agreement?

Accepted Answer

A)  An agreement to pay a legislator to vote for a particular bill 
B)  An agreement under which Arthur agrees to pay Barbara $3,000 to disparage the product of Arthur's competitor 
C)  An agreement by the seller of a service station not to enter the service station business in Ohio for a period of 30 years after the sale of his business 
D)  An agreement by a car salesman not to sell automobiles or automobile parts in Marin County for a period of one year after terminating his employment 
A)  An agreement to pay a legislator to vote for a particular bill 
B)  An agreement under which Arthur agrees to pay Barbara $3,000 to disparage the product of Arthur's competitor 
C)  An agreement by the seller of a service station not to enter the service station business in Ohio for a period of 30 years after the sale of his business 
D)  An agreement by a car salesman not to sell automobiles or automobile parts in Marin County for a period of one year after terminating his employment

Question 14

Non-compete agreements drafted for employees of Internet companies:

Accepted Answer

A)  are interpreted no differently in terms of standards of reasonableness than are agreements for other types of companies. 
B)  are subject to larger geographic restrictions than for other types of companies. 
C)  are subject to longer periods of reasonable duration. 
D)  are irrelevant. 
A)  are interpreted no differently in terms of standards of reasonableness than are agreements for other types of companies. 
B)  are subject to larger geographic restrictions than for other types of companies. 
C)  are subject to longer periods of reasonable duration. 
D)  are irrelevant.

Question 15

Courts require that for a contract to be unenforceable based on unconscionability,both substantive and procedural unconscionability must be equally present.

Accepted Answer

A) True 
 B)False

Question 16

William recently sold his successful business to Janice.The contract for the sale contained an unreasonable restriction that did not allow William to open a similar business for fifteen years.In this instance,the courts would likely:

Accepted Answer

A)  reform the contract to make it reasonable and enforceable. 
B)  require the parties to draft a new contract. 
C)  enforce the contract as it is written. 
D)  void the contract on grounds of unconscionability. 
A)  reform the contract to make it reasonable and enforceable. 
B)  require the parties to draft a new contract. 
C)  enforce the contract as it is written. 
D)  void the contract on grounds of unconscionability.

Question 17

Numerous states impose no limit on the rate of interest that may be charged on:

Accepted Answer

A)  loans to corporations. 
B)  credit card transactions. 
C)  loans made by certain designated types of lenders. 
D)  All of these. 
A)  loans to corporations. 
B)  credit card transactions. 
C)  loans made by certain designated types of lenders. 
D)  All of these.

Question 18

Maximum rates of interest that are permitted under usury statutes are uniform from state to state.

Accepted Answer

A) True 
 B)False

Question 19

A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true with regard to an exculpatory clause?

Accepted Answer

A)  An exculpatory clause excuses one party from liability for her own tortious conduct. 
B)  Where one party has a superior bargaining position that has enabled him to impose an exculpatory clause upon the other,the courts are inclined to nullify the provision. 
C)  An exculpatory clause may be unenforceable for unconscionability. 
D)  All of these are true. 
A)  An exculpatory clause excuses one party from liability for her own tortious conduct. 
B)  Where one party has a superior bargaining position that has enabled him to impose an exculpatory clause upon the other,the courts are inclined to nullify the provision. 
C)  An exculpatory clause may be unenforceable for unconscionability. 
D)  All of these are true.

Exam 13: Illegal Bargains

Noncompete agreements for Internet-based jobs have the same limitations in determining what is reasonable as to time and place restrictions as other types of jobs.

An agreement to refrain from a particular trade,profession,or business is enforceable if two requirements are met: that it protects a property interest of the promisee and that the restraint is no more extensive than is reasonably necessary to protect that interest.

Courts usually will require evidence of what factors for a transaction to be usurious?

The courts will enforce an agreement declared illegal by statute.

A contract prepared on a standard form and offering terms on a take-it-or-leave-it basis is called:

The usual means of enforcing an agreement prohibiting an employee from competing in a described territory for a stated period of time is by injunction.

The courts readily enforce a covenant not to compete during the period of employment.

Sarah is working hard on the mayoral campaign of Timothy.She thinks that just a few more votes could win the election,so she promises to pay her friend Violet $50 to register and vote.Violet does so,but Timothy loses the election,and Sarah now refuses to pay.The agreement is:

R&R,Inc.entered into a contract with Scott,an agent,under the terms of which Scott would receive $20,000 if he stole trade secrets from the leading competitor of R&R.Scott performed his end of the agreement by delivering the trade secrets.If R&R now refuses to pay Scott for his services,Scott:

Which of the following would be considered a valid and legally enforceable agreement?

Non-compete agreements drafted for employees of Internet companies:

Courts require that for a contract to be unenforceable based on unconscionability,both substantive and procedural unconscionability must be equally present.

William recently sold his successful business to Janice.The contract for the sale contained an unreasonable restriction that did not allow William to open a similar business for fifteen years.In this instance,the courts would likely:

Numerous states impose no limit on the rate of interest that may be charged on:

Maximum rates of interest that are permitted under usury statutes are uniform from state to state.

A covenant not to compete is a type of restraint of trade that courts today will enforce under certain circumstances.

Which of the following is true with regard to an exculpatory clause?

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

A: Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance,breach,and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits,collections,and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature,formation,and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection Double

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property,property Insurance,bailments,and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

Legal Terminology: Understanding Criminal and Civil Law Systems

Contract Law Terminology

Exploring the Legal Concepts of Agency and Fiduciary Duty

Understanding Key Legal Concepts in Sales and Contracts

Understanding the Terminology of Banking and Finance: Key Concepts and Definitions

Exploring Legal Concepts and Processes in Business Partnerships

Understanding Corporate Law: A Guide to Ultra Vires Acts, Subscribers, Debt Securities, and More

Understanding Key Terms in Secured Transactions and Bankruptcy Law

Legal Topics and Terms

Legal Topics in Property Ownership and Management

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