Exam 13: Legality

L & M loaned Joan $400 so that she could buy her textbooks for the current semester.L & M's terms for repayment of the loan (including interest)are,$200 in two months,$200 in four months,and another $100 at the end of the fifth month.The legal maximum rate of interest on this type of loan is six percent per annum.L & M's loan is usurious.

(True/False)

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Question 41

A contract most likely will be declared unconscionable if:

(Multiple Choice)

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Question 42

To be valid,an agreement not to compete must be ancillary to a legitimate bargain.

(True/False)

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Question 43

An insurance contract is not considered to be a legalized form of gambling because:

(Multiple Choice)

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Question 44

Mike owns a house in a poor area of a large city.Mike is on disability and his total monthly income is $700.A sales representative visits his home,selling a water purification system.Mike signs a contract that calls for monthly payments of $500 for the next 10 years.The water system is worth no more than $1000.Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water.How would a court most likely describe this contract?

(Multiple Choice)

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Question 45

An exculpatory clause is generally unenforceable when:

(Multiple Choice)

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Question 46

Showing 41 - 46 of 46

Exam 13: Legality

A contract most likely will be declared unconscionable if:

To be valid,an agreement not to compete must be ancillary to a legitimate bargain.

An insurance contract is not considered to be a legalized form of gambling because:

An exculpatory clause is generally unenforceable when:

Introduction To Law

Business Ethics And Social Responsibility

Dispute Resolution

Common Law,Statutory Law,And Administrative Law

Constitutional Law

Intentional Torts And Business Torts

Negligence And Strict Liability

Crime

International Law

Introduction To Contracts

Agreement

Consideration

Capacity And Consent

Written Contracts

Third Parties

Performance And Discharge

Remedies

Practical Contracts

Introduction To Sales

Ownership And Risk

Warranties And Product Liability

Performance And Remedies

Secured Transactions

Creating A Negotiable Instrument

Liability For Negotiable Instruments

Accountants' Liability

Agency Law

Employment Law

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Starting A Business

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Life And Death Of A Corporation

Corporate Management

Shareholders

Securities Regulation

Bankruptcy

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Consumer Law

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Personal Property And Bailment

Planning For The Future: Wills,Trusts,And Insurance

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