Question 1

In which of the following situations is a court most likely to refuse to enforce a noncompetition clause?

Accepted Answer

A) The clause is not ratified by the employer. 
B) The employment contract,which contains the clause,is an implied-in-fact contract. 
C) The clause restricts employees from engaging in a "common calling." 
D) The employment contract,which contains the clause,is a quasi-contract. 
A) The clause is not ratified by the employer. 
B) The employment contract,which contains the clause,is an implied-in-fact contract. 
C) The clause restricts employees from engaging in a "common calling." 
D) The employment contract,which contains the clause,is a quasi-contract. C

Question 2

Any contract that is deemed illegal is also a criminal violation.

Accepted Answer

A) True 
 B)False  False

Question 3

Where no separate consideration is exchanged for the legal and illegal parts of an agreement,the agreement is said to be ________.

Accepted Answer

A) unconscionable 
B) rescind 
C) indivisible 
D) adhesive 
A) unconscionable 
B) rescind 
C) indivisible 
D) adhesive C

Question 4

Paul is hired by Soprano as a security guard.At the time of hiring,Paul signs an agreement that relieves Soprano from workers' compensation liability.This agreement is most likely:

Accepted Answer

A) enforceable because Paul and Soprano have equal bargaining power. 
B) unenforceable because it includes intentional torts. 
C) enforceable so long as the terms of the agreement are conspicuously disclosed. 
D) unenforceable as a violation of public policy. 
A) enforceable because Paul and Soprano have equal bargaining power. 
B) unenforceable because it includes intentional torts. 
C) enforceable so long as the terms of the agreement are conspicuously disclosed. 
D) unenforceable as a violation of public policy.

Question 5

In Singh v.Uber Technologies Inc. ,the case in the text,the court concluded that:

Accepted Answer

A) because there was a large disparity in bargaining power between the parties,the agreement was unconscionable. 
B) Uber took advantage of its drivers when it failed to pay overtime compensation and made the drivers pay for significant business expenses that were incurred for Uber's benefit. 
C) because Uber did not provide users with an opportunity to read the full terms of the agreement prior to acceptance,the agreement was unconscionable. 
D) Singh may be able to demonstrate a disparity in bargaining power but he failed to show that the agreement was substantively unconscionable. 
A) because there was a large disparity in bargaining power between the parties,the agreement was unconscionable. 
B) Uber took advantage of its drivers when it failed to pay overtime compensation and made the drivers pay for significant business expenses that were incurred for Uber's benefit. 
C) because Uber did not provide users with an opportunity to read the full terms of the agreement prior to acceptance,the agreement was unconscionable. 
D) Singh may be able to demonstrate a disparity in bargaining power but he failed to show that the agreement was substantively unconscionable.

Question 6

The policy against restraints on competition is based on the economic judgment that the public interest is best served by:

Accepted Answer

A) freedom of association. 
B) freedom of contract. 
C) free competition. 
D) laissez-faire. 
A) freedom of association. 
B) freedom of contract. 
C) free competition. 
D) laissez-faire.

Question 7

Amy is hired by BigMart as a cashier.At the time of hiring,Amy is required to sign an arbitration agreement under which she agreed to settle any and all claims she might have relating to her employment by final and binding arbitration before a neutral arbitrator and in accordance with BigMart's "Dispute Resolution Rules and Procedures" which is a separate ten-page document containing complex procedural details.Under the agreement,Amy is required to pay for all arbitration-related costs,and BigMart can still sue Amy in civil court for claims arising from her employment.A court will most likely view this agreement as:

Accepted Answer

A) unenforceable since it is a quasi-contract. 
B) enforceable because it is an arbitration agreement. 
C) unconscionable because it is an adhesion contract that is oppressive. 
D) enforceable because it is part of a valid employment agreement. 
A) unenforceable since it is a quasi-contract. 
B) enforceable because it is an arbitration agreement. 
C) unconscionable because it is an adhesion contract that is oppressive. 
D) enforceable because it is part of a valid employment agreement.

Question 8

Whether a statute is a regulatory statute or a revenue-raising statute depends on:

Accepted Answer

A) common law. 
B) the plain meaning of the language. 
C) the intent of the legislature. 
D) interpretation by administrative agencies. 
A) common law. 
B) the plain meaning of the language. 
C) the intent of the legislature. 
D) interpretation by administrative agencies.

Question 9

There must be separate ________ for each promise or act for a contract to be considered divisible.

Accepted Answer

A) payments 
B) consideration 
C) headings 
D) clauses 
A) payments 
B) consideration 
C) headings 
D) clauses

Question 10

Under the doctrine of unconscionability, courts would refuse to grant the equitable remedy of specific performance for breach of contract if the contract was oppressively unfair.

Accepted Answer

A) True 
 B)False

Question 11

Courts tend to judge noncompetition clauses in ________ by a stricter standard than they judge similar clauses contained in ________.

Accepted Answer

A) ancillary agreements;employment contracts 
B) employment contracts;contracts for the sale of a business 
C) contracts for the sale of a business;employment contracts 
D) ancillary agreements;contracts for the sale of a business 
A) ancillary agreements;employment contracts 
B) employment contracts;contracts for the sale of a business 
C) contracts for the sale of a business;employment contracts 
D) ancillary agreements;contracts for the sale of a business

Question 12

A(n)________ clause is a provision in a contract that purports to relieve one of the parties from tort liability.

Accepted Answer

A) exculpatory 
B) implied-in-fact 
C) quasi 
D) expressed 
A) exculpatory 
B) implied-in-fact 
C) quasi 
D) expressed

Question 13

Which of the following is not a factor when a court considers whether an agreement is illegal for public policy reasons?

Accepted Answer

A) The importance of the public policy involved. 
B) Whether both parties knew the agreement was illegal. 
C) The seriousness of any wrongdoing involved. 
D) If enforcement of the agreement would interfere with the public policy involved. 
A) The importance of the public policy involved. 
B) Whether both parties knew the agreement was illegal. 
C) The seriousness of any wrongdoing involved. 
D) If enforcement of the agreement would interfere with the public policy involved.

Question 14

What is an exculpatory clause?

Accepted Answer

An exculpatory clause (often called a "r

Question 15

Which of the following is most true regarding noncompetition clauses in contracts?

Accepted Answer

A) Such clauses are not used during employment contracts. 
B) Such clauses will be enforced if they have a legitimate business purpose. 
C) Such clauses are enforced only for protecting the environment and conserving resources. 
D) Such clauses help in promoting free trade. 
A) Such clauses are not used during employment contracts. 
B) Such clauses will be enforced if they have a legitimate business purpose. 
C) Such clauses are enforced only for protecting the environment and conserving resources. 
D) Such clauses help in promoting free trade.

Question 16

In the case in the text,Walters v.YMCA,what was the court's holding?

Accepted Answer

A) The language of the exculpatory clause was void and unenforceable as against public policy. 
B) Then language of the exculpatory clause was overly broad and unenforceable as against public policy. 
C) The language of the exculpatory clause was appropriate under the circumstances and Walters could not recover. 
D) The language of the exculpatory clause was unenforceable because parties cannot free themselves of negligence liability. 
A) The language of the exculpatory clause was void and unenforceable as against public policy. 
B) Then language of the exculpatory clause was overly broad and unenforceable as against public policy. 
C) The language of the exculpatory clause was appropriate under the circumstances and Walters could not recover. 
D) The language of the exculpatory clause was unenforceable because parties cannot free themselves of negligence liability.

Question 17

An agreement to divorce one's spouse is considered to be illegal.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true regarding an exculpatory clause?

Accepted Answer

A) It is illegal in nature. 
B) It is also termed a "release." 
C) It is invalid in negligence cases. 
D) It imposes strict liability on the guilty party. 
A) It is illegal in nature. 
B) It is also termed a "release." 
C) It is invalid in negligence cases. 
D) It imposes strict liability on the guilty party.

Question 19

Which of the following is an example of substantive unconscionability?

Accepted Answer

A) Terms that are stated in "fine print" 
B) A disparity in bargaining power between the parties 
C) High-pressure sales tactics 
D) Unjustifiably harsh terms 
A) Terms that are stated in "fine print" 
B) A disparity in bargaining power between the parties 
C) High-pressure sales tactics 
D) Unjustifiably harsh terms

Question 20

A contract to commit a serious crime is a legal contract.

Accepted Answer

A) True 
 B)False

Exam 15: Illegality

In which of the following situations is a court most likely to refuse to enforce a noncompetition clause?

Any contract that is deemed illegal is also a criminal violation.

Where no separate consideration is exchanged for the legal and illegal parts of an agreement,the agreement is said to be ________.

Paul is hired by Soprano as a security guard.At the time of hiring,Paul signs an agreement that relieves Soprano from workers' compensation liability.This agreement is most likely:

In Singh v.Uber Technologies Inc. ,the case in the text,the court concluded that:

The policy against restraints on competition is based on the economic judgment that the public interest is best served by:

Whether a statute is a regulatory statute or a revenue-raising statute depends on:

There must be separate ________ for each promise or act for a contract to be considered divisible.

Under the doctrine of unconscionability, courts would refuse to grant the equitable remedy of specific performance for breach of contract if the contract was oppressively unfair.

Courts tend to judge noncompetition clauses in ________ by a stricter standard than they judge similar clauses contained in ________.

A(n)________ clause is a provision in a contract that purports to relieve one of the parties from tort liability.

Which of the following is not a factor when a court considers whether an agreement is illegal for public policy reasons?

What is an exculpatory clause?

Which of the following is most true regarding noncompetition clauses in contracts?

In the case in the text,Walters v.YMCA,what was the court's holding?

An agreement to divorce one's spouse is considered to be illegal.

Which of the following is true regarding an exculpatory clause?

Which of the following is an example of substantive unconscionability?

A contract to commit a serious crime is a legal contract.

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Writing

Rights of Third Parties

Performance and Remedies

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

Filters

Courts tend to judge noncompetition clauses in by a stricter standard than they judge similar clauses contained in .