Question 1

Agreements that are contrary to public policy are binding but voidable.

Accepted Answer

A) True 
 B)False

Question 2

When a nationally-known neurosurgeon in Chicago, Illinois sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year.

Accepted Answer

A) True 
 B)False

Question 3

An agreement to restrain trade may be void on the grounds that it is:

Accepted Answer

A)  fraudulent. 
B)  contrary to public policy. 
C)  illegal lobbying. 
D)  unfair to merchants. 
A)  fraudulent. 
B)  contrary to public policy. 
C)  illegal lobbying. 
D)  unfair to merchants.

Question 4

Participation in a free raffle without consideration is lawful, because there is no lottery.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are types of contracts that might be unenforceable as contrary to public policy except:

Accepted Answer

A)  a contract that is contrary to the protection of the public welfare, health, or safety 
B)  a contract that is contrary to the protection of the person 
C)  a contract that is contrary to the protection of recognized social institutions 
D)  a contract that does not harm the public good 
A)  a contract that is contrary to the protection of the public welfare, health, or safety 
B)  a contract that is contrary to the protection of the person 
C)  a contract that is contrary to the protection of recognized social institutions 
D)  a contract that does not harm the public good

Question 6

Sam Wilson often goes to the horse races, participates in his state's lottery, and invests heavily in the stock of major U.S. companies. At work, Wilson is approached by his coworkers and asked to participate in a football pool. "It's totally based upon skill," his friends claim. In addition, Wilson's philanthropic club is holding a raffle in which an individual could win a new car. Are these activities gambling and therefore illegal activities?

Accepted Answer

Events sanctioned by the federal and sta

Question 7

A take-it-or-leave-it contract of adhesion is an example of substantive unconscionability.

Accepted Answer

A) True 
 B)False

Question 8

In an employment contract, agreements not to compete are:

Accepted Answer

A)  illegal 
B)  uniformly held to be in the public interest and therefore legal 
C)  valid only if the restriction protects the employee 
D)  valid, if the restriction is reasonable and necessary for the protection of the former employer 
A)  illegal 
B)  uniformly held to be in the public interest and therefore legal 
C)  valid only if the restriction protects the employee 
D)  valid, if the restriction is reasonable and necessary for the protection of the former employer

Question 9

An agreement that unreasonably restrains trade is illegal and void on the ground that it is contrary to public policy.

Accepted Answer

A) True 
 B)False

Exam 15: Legality and Public Policy

Agreements that are contrary to public policy are binding but voidable.

When a nationally-known neurosurgeon in Chicago, Illinois sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year.

An agreement to restrain trade may be void on the grounds that it is:

Participation in a free raffle without consideration is lawful, because there is no lottery.

All of the following are types of contracts that might be unenforceable as contrary to public policy except:

A take-it-or-leave-it contract of adhesion is an example of substantive unconscionability.

In an employment contract, agreements not to compete are:

An agreement that unreasonably restrains trade is illegal and void on the ground that it is contrary to public policy.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters