Exam 13: Capacity and Legality

In an employment contract,a covenant not to compete is unenforceable.

Nyoko signs a covenant not to compete with her employer,Midstate Distribu-tion,Inc. The covenant will be enforced if it

Any contract to commit a crime is unenforceable.

Contracts in restraint of trade generally are enforceable because they positively affect public policy.

Best Products,Inc.,hires Cole to develop and implement an e-commerce strategy for marketing Best's products. Cole signs a contract that in-cludes a clause prohibiting him from competing with Best during and af-ter the employment. Before the strategy is implemented,Cole resigns from Best's employ and opens a business to compete with Best. In Best's suit against Cole,what is the most important factor the court should consider in determining whether Cole should be allowed to compete with Best?

A minor "avoids" a contract by disaffirming it.

If a court has determined that a person is mentally competent,any contract made by that person is void.

Jimenez is an emergency medical technician. Medical personnel such as Jimenez are pro-hibited by state statute from working more than a certain num-ber of consecutive hours. One month,Jimenez works more than the legal limit. Jimenez can recover for

If an illegal contract has been executed,either party can recover damages.

In general,an illegal contract is void.

Oklahoma charges Dewey,a design engineer and the owner of Windfarm Energy Corporation,a fee to practice his profession in the state. This is

At Glamour Mattress Store,Robbie signs a contract to buy a suite of bedroom furniture. The contract sets a schedule of $500 monthly payments,subject to a late fee of 150 percent. Glamour's salesperson hurries Robbie through the deal,giving her no opportunity to read the contract. This is most likely

Jody,a minor,is living at home with her parents,but signs a lease with Idyll Grove Apartments,a landlord,to rent an apartment. Jody can

Shannon signs a contract with Tevin,an unlicensed contractor,to build a deck and gazebo at the rear of her house. This contract is enforceable by

Rosie,a minor subject to her parents' care and control,signs a contract to rent a lake cabin from Sinclair for one year. Before the end of the term,Rosie moves out. Sinclair sues for the rent for the rest of the term. Rosie can

When a minor disaffirms a contract,he or she must return whatever he or she received as a result of the contract.

Boz runs an illegal gambling business and pays Colin,a police officer,not to interfere. The payments are discovered. Boz and Colin are sent to prison. With respect to the amount of the payments,Boz can recover

A contract that is void from the outset can be enforced in some circumstances.

Oscar owns Payroll Company,a bookkeeping service losing market share to Quik Bookwork,Inc. Oscar pays Remy $5,000 to steal a list of Quik's clients,to whom Oscar will aggressively market Payroll's services. This deal is

Gambling involves the distribution of property by chance.