Exam 15: Illegality

Toby,an Ohio real estate broker,misrepresented to Allen that he was licensed in Michigan under Michigan's statute regulating real estate brokers.Allen signed a standard form listing contract agreeing to pay Toby a 6% commission for selling Allen's home in Michigan.Toby sold Allen's home.Under the circumstances,Allen is:

When a court says that an agreement is illegal,it most likely means that the agreement:

Jerry and Louise contract for Jerry to sell Louise his farm for $300,000.As part of the deal,Jerry throws in a pound of marijuana seeds,for which Louise is to pay an extra $1,000.Louise's plan is to use the seeds to grow a marijuana crop.Is the whole contract or any part of the contract enforceable? Assume that both the sale of marijuana seeds and the cultivation of a marijuana crop are illegal.

One example of procedural unconscionability is the use of "fine print" in stating a contractual provision.

A contract is said to be ________-that is,the legal part can be separated from the illegal part-if the contract consists of several promises or acts by one party,each of which corresponds with an act or a promise by the other party.

Which of the following is a possible example of procedural unconscionability?

Todd is a licensed real estate broker in Ohio.One of Todd's largest clients,Sun Corp. ,contracted in writing with Todd to find a purchaser for its plant in New York and agreed to pay him a 6% commission if he was successful.Todd located a buyer who purchased the plant.Unknown to Todd,New York has a real estate broker's licensing statute which is regulatory in nature,intended to protect the public against unqualified persons.Todd violated the licensing statute by failing to obtain a New York license.If Sun refuses to pay Todd any commission and Todd brings an action against Sun,he will be entitled to recover:

Courts often refer to unfairness in the bargaining process as ________.

What would happen if courts enforced agreements that involve the violation of a statute?

Public policy never changes and courts always apply it in the same way.

The fact that statutes requiring a license only requires payment of a fee indicates that the purpose of the law is to:

Normally,an illegal contract is:

In an employment contract,the noncompetition clause might be the only part of the contract:

Generally,statutes that require proof of character and skill and impose penalties for violation are considered to be ________ in nature.

When a legislature has specifically stated that a particular contract is void,a court need only:

To determine ________ unconscionability,courts will scrutinize the contract terms themselves to determine whether they are oppressive,unreasonably one-sided,or unjustifiably harsh.

Courts will always enforce an exculpatory clause from a properly executed contract.

Even if both parties consent to an agreement,if a court finds the agreement illegal then it will not enforce it.

Which of the following is a possible outcome if a court finds that a contract or a term in a contract is unconscionable?

A court has held that a certain contract violates public policy.This contract will be treated the same as a(n):