Exam 15: Illegality

If a consumer is presented with a contract of adhesion with no opportunity to negotiate terms and signs the agreement without understanding what he is signing,has he consented to the terms?

Which of the following is NOT a requirement in the enforceability of a noncompetition clause?

The Uniform Commercial Code (UCC)allows the court to modify or limit the enforcement of a provision in a contract that is found to be unconscionable.

Mr.Green enters into a contract with Ms.White to purchase legal ingredients that he plans to use to perfect an illegal marijuana manufacturing operation.Ms.White is aware that Mr.Green intends to use the ingredients for an illegal purpose.She refuses to pay the amount owed to Mr.Green and he sues in court.What is the court likely to do?

Which of the following terms refers to a widely shared view about what ideas,interests,institutions,or freedoms promote public welfare?

Helga owns an insurance business in Idaho.Her clients are all Idaho residents.She later sells her business to Carlos.As part of the deal,the contract contains a noncompete clause that prevents Helga from operating an insurance business anywhere in Idaho,Washington,or Oregon for a period of five years.Six months after this sale,Helga opens an insurance business in Oregon.If Carlos seeks to enforce the noncompete agreement against Helga,will he probably be successful?

Sam,a plumber,entered into a contract for $75,000 with Orr,Inc. ,to perform certain plumbing services in a building owned by Orr.After Sam had satisfactorily performed the work,Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license.As a result,Orr refused to pay Sam.The licensing statute was enacted merely to raise revenue for the state.An independent appraisal of Sam's work indicated that the building's fair market value increased by $70,000 as a result of Sam's work.The cost of the materials that Sam supplied was worth $35,000.If Sam sues Orr,Sam will be entitled to recover:

To encourage people to cancel illegal contracts,courts will allow a person who rescinds such a contract before any illegal act has been performed to recover any consideration that he has given.

Jan opens a sandwich shop across the street from another sandwich shop run by Amy.Amy is disturbed by this competition,and she agrees to pay Jan $5,000,in exchange for Jan's promise to quit the business and not to engage in a similar business within ten-mile radius of Amy's business.Is this contract legal and enforceable? Why or why not? If the agreement is not enforceable,how might Jan and Amy restructure it to increase its chances of being legal?

Which of the following was NOT taken into account by classical law in assessing contracts?