Exam 15: Illegality

Which of the following is true of blue laws?

What is the legal effect of a contract that is injurious to public service?

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

The courts allow one who rescinds the contract before any illegal act has been performed to recover any consideration given.

Even though it is often said that ignorance of the law is no excuse, the courts have sometimes allowed recovery if one or both parties to an illegal bargain are ignorant of the facts that made the bargain illegal.

The failure to obtain a license required by a statute whose sole purpose is to raise revenue does not affect the legality of unlicensed persons' agreements.

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

Exculpatory clauses are generally unenforceable if they seek to avoid liability for:

Which of the following remedies is used in cases involving illegal wagering contracts?

A restraint that is merely ancillary to a contract may be legal if:

_____ 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.

A(n) _____ clause is a provision in a contract that attempts to relieve one party to the contract from liability for the consequences of his or her negligence.

The courts have no power over unconscionable contracts.

Even if the parties to an agreement have met every other requirement for a valid contract, their agreement is unenforceable if either its formation or its performance is illegal or contrary to the public interest.

Regulatory statutes are designed primarily to:

Which of the following statements is true of contracts made illegal by statutes?

Agreements designed solely to restrict trade are legal.

Usury laws prohibit the performance of certain work and the transaction of certain business on Sunday.

What is an exculpatory clause?

Mayor Magnus wants to recruit a Harvard economist, Milton, as the chief developer for the Small Town's economic development division. The legal cap on the job of chief developer is $60,000. Magnus offers Milton $100,000. The contract is: