Question 1

Contracts of adhesion refer to contracts in which the only choice for one of the parties is between "adhering" to the terms dictated by the other party or not contracting at all.

Accepted Answer

A) True 
 B)False

Question 2

The legal concept of unconscionability:

Accepted Answer

A)  is part of the doctrine of freedom of contract. 
B)  rules that certain sections of contracts are voidable. 
C)  pertains to unequal bargains. 
D)  comes into effect only during contracts between consumers and large companies. 
A)  is part of the doctrine of freedom of contract. 
B)  rules that certain sections of contracts are voidable. 
C)  pertains to unequal bargains. 
D)  comes into effect only during contracts between consumers and large companies.

Question 3

A party that enters into an illegal contract can recover the considerations given if the party:

Accepted Answer

A)  reports the illegal act to law enforcement after committing it. 
B)  rescinds the contract before any illegal act has been performed. 
C)  demonstrates an unequal bargain due to the illegal contract. 
D)  rescinds the contract immediately after the illegal act has been performed. 
A)  reports the illegal act to law enforcement after committing it. 
B)  rescinds the contract before any illegal act has been performed. 
C)  demonstrates an unequal bargain due to the illegal contract. 
D)  rescinds the contract immediately after the illegal act has been performed.

Question 4

Which of the following types of contracts is created when a party with superior bargaining power imposes unfair terms on the other party?

Accepted Answer

A)  Executory contracts 
B)  Unconscionable contracts 
C)  Bilateral contracts 
D)  Express contracts 
A)  Executory contracts 
B)  Unconscionable contracts 
C)  Bilateral contracts 
D)  Express contracts

Question 5

If no duty to the public is involved and the parties have freely and knowingly agreed,the exculpatory clause may be enforceable.

Accepted Answer

A) True 
 B)False

Question 6

_____ are defined as contracts in which the only choice for one of the parties is between agreeing to the terms dictated by the other party or not contracting at all.

Accepted Answer

A)  Contracts of expression 
B)  Contracts of adhesion 
C)  Aleatory contracts 
D)  Bilateral contracts 
A)  Contracts of expression 
B)  Contracts of adhesion 
C)  Aleatory contracts 
D)  Bilateral contracts

Question 7

The failure to obtain a license required by a statute for revenue-raising purposes:

Accepted Answer

A)  affects the legality of the unlicensed person's agreements and it will be considered void. 
B)  results in generally unenforceable contracts. 
C)  does not affect the legality of unlicensed persons' agreements. 
D)  automatically declares the contract void for the protection of the public. 
A)  affects the legality of the unlicensed person's agreements and it will be considered void. 
B)  results in generally unenforceable contracts. 
C)  does not affect the legality of unlicensed persons' agreements. 
D)  automatically declares the contract void for the protection of the public.

Question 8

Explain the difference between a regulatory and revenue-raising statute.

Accepted Answer

A regulatory statute is designed primari

Question 9

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

Accepted Answer

A)  intent of the legislature. 
B)  enforceability of the contract. 
C)  flexibility of the license. 
D)  duration of the license. 
A)  intent of the legislature. 
B)  enforceability of the contract. 
C)  flexibility of the license. 
D)  duration of the license.

Question 10

If a court finds a contract to be unconscionable,the Uniform Commercial Code gives it the power to:

Accepted Answer

A)  enforce only the legal obligations of the superior party involved. 
B)  relieve one party from liability for the consequences of his or her own negligence. 
C)  relieve a party of liability under willful misconduct or fraud. 
D)  enforce the contract in a way that avoids an unconscionable result. 
A)  enforce only the legal obligations of the superior party involved. 
B)  relieve one party from liability for the consequences of his or her own negligence. 
C)  relieve a party of liability under willful misconduct or fraud. 
D)  enforce the contract in a way that avoids an unconscionable result.

Exam 15: Illegality

Contracts of adhesion refer to contracts in which the only choice for one of the parties is between "adhering" to the terms dictated by the other party or not contracting at all.

The legal concept of unconscionability:

A party that enters into an illegal contract can recover the considerations given if the party:

Which of the following types of contracts is created when a party with superior bargaining power imposes unfair terms on the other party?

If no duty to the public is involved and the parties have freely and knowingly agreed,the exculpatory clause may be enforceable.

_____ are defined as contracts in which the only choice for one of the parties is between agreeing to the terms dictated by the other party or not contracting at all.

The failure to obtain a license required by a statute for revenue-raising purposes:

Explain the difference between a regulatory and revenue-raising statute.

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

If a court finds a contract to be unconscionable,the Uniform Commercial Code gives it the power to:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

Filters