Exam 15: Legality and Public Policy

Substantive unconscionability has to do with matters of freedom of assent.

The failure to have a license will not render agreements void if the license:

Sales promotion schemes calling for the distribution of property according to chance among the purchasers of goods are:

In certain situations, the law may hold a contract provision unenforceable because it is too harsh or oppressive to one of the parties.

All of the following agreements represent an unreasonable restraint of trade except:

A standard arbitration clause can be substantively unconscionable if the fees and costs are so excessive as to deny the innocent party the ability to resolve his claim.

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges, and insurance costs.

In the absence of a valid restrictive covenant, the seller of a business may compete with an ex-employee and solicit customers of the former employer.

In the sale of a business, all the following elements are necessary to create an enforceable noncompete clause, except:

If an illegal agreement has already been performed, either party can sue for damages.

Fees charged by a lender for the reasonable expense of making a loan, such as the cost of appraising property, are treated as interest for purposes of the usury law.

An agreement between Jim and his 18-year-old daughter, Betty, provides that he will give her $25,000 if she does not marry until after her 22nd birthday. One month after reaching the age of 22, Betty, still unmarried, claims the $25,000.?Jim refuses to pay, claiming that the agreement was illegal. Is Jim correct?

An unlicensed doctor can sue a patient for the doctor's fee if the patient in fact recovered because of the doctor's care.

Parties to illegal agreements are generally not entitled to help from the courts.

A court may sever an unconscionable clause from a contract and enforce the remainder of the contract.

When money is loaned at a greater rate of interest than is allowed by law, __________ is committed.

An agreement is illegal only when either its performance is a crime.

One element involved in the determination of unconscionability is:

An agreement to slander a third person would not be enforceable because slander is a(n):

If a contract can be interpreted in two ways, one legal and the other illegal, the court will assume that the legal meaning was intended unless the contrary is clearly indicated.