Exam 13: Illegal Bargains

Carl and Ron both work in road construction. 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 Ron will bid on the other, so that they both have work for the summer. When the bids are opened, Carl realizes that Ron has bid on both jobs. Ron is awarded both contracts. If Carl now wants to sue Ron for breach of contract:

An adhesion contract is offered on a "take-it-or-leave-it" basis.

Some states require the lender to forfeit two or three times the amount of usurious interest charged.

A contract of adhesion:

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

A __________ is a law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract.

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 __________ to protect the employer's legitimate interest.

Carlos owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and, as part of the transaction, agrees not to engage in the same business anywhere in River City for a period of two years. In this case:

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

Courts usually will require evidence for a transaction to be usurious. What factors will the courts require as evidence of usury?