Exam 13: Illegal Bargains

Specific lender usury statutes rather than the general usury statute generally apply to real estate mortgages and small consumer loans.

A(n)____ is a measure designed to protect the public from unqualified practitioners.

An exculpatory clause attempts to excuse one from liability for her own tortious conduct.

Andrew owns a store in Polk County.His trade extends throughout River City,but not beyond the county limits.He sells his store to Betty and,as part of the transaction,agrees not to engage in the same business anywhere in River City for a period of five years.The agreement:

Which of the following would always be considered to be contrary to public policy?

The Code and the Restatement both contain definitions of what constitutes "unconscionable" conduct.

As a general rule,illegal contracts are unenforceable and neither party can successfully sue the other for breach or recover for any performance rendered.

Patrick agrees to sell two different goods to his friend Ron,a retailer.One item is legal,and one item is illegal.The contract price is $2,000.In this case:

Where a stipulation in restraint of trade is a part of the contract for the sale of a business,it may be valid if the restraint is within reasonable limitations to protect the business's goodwill.

Regulation of gambling is solely under federal jurisdiction,through Congressional legislation and U.S.court enforcement.

In cases where one party to an illegal agreement is less at fault than the other,he will be allowed to recover payments made or property transferred.

An exculpatory clause excusing a party from liability for harm caused by reckless conduct will generally make a contract unenforceable as a violation of public policy.

Tyrell has a tax service and accounting business in Redwood City.He decides to move to Center City,which is 150 miles away and sells his accounting practice to Able and Baker,a CPA firm.In the sales contract,he agrees that he will refrain from practicing accounting anywhere within a 20-mile radius of Redwood City for a period of two years.However,on weekends he returns to his house in Redwood City,and when clients call him,he meets with them in his home.The sales agreement:

Before granting an injunction enjoining a former employee from competing in a described territory,the courts insist that the employer demonstrate that the restriction is:

Deanna,an attorney,has a personal injury case which is set for trial next week.She needs a good doctor to testify on behalf of her client,so she contacts Dr.Dogood who agrees to testify on behalf of Deanna's client at the trial.In return for Dr.Dogood's testimony,Deanna agrees to pay Dr.Dogood $10,000 if they win the case,and $5,000 if they lose.Dr.Dogood agrees.The agreement between Deanna and Dr.Dogood is unenforceable.

The UCC provides that if a court as a matter of law finds a contract for the sale of goods or a clause of such a contract to have been unconscionable at the time it was made,the court may:

Finn is currently enrolled in law school.He expects to graduate and take the bar exam in order to be able to practice law.Before Finn becomes a lawyer,he promises to represent his friend,Landon,in a breach of contract action if Landon will pay him 25% of the settlement.Finn negotiates and the case settles for $50,000.Landon refuses to pay Finn.Finn then graduates and attempts to sue Landon.Finn has a legal right to enforce the agreement.

Nell gives Al $50 in return for Al's promise to defame Sara.Nell hopes to ruin Sara's chances at a promotion.Nell finds out that Al did not hold up his end of the agreement.Which of the following statements is true?

Andrew owns a store in Polk County.His trade extends throughout River City,but not beyond the county limits.He sells his store to Betty and,as part of the transaction,agrees not to engage in the same business anywhere within the state for a period of three years.The agreement:

A court would be likely to enforce an illegal contract: