Question 1

Which of the following types of contracts might be unenforceable as contrary to public policy?

Accepted Answer

A)  a contract that is contrary to the protection of the public welfare, health, or safety
B)  a contract that is contrary to the protection of the person
C)  a contract that is contrary to the protection of recognized social institutions
D)  all of the above

Question 2

To stabilize the industry, manufacturers of the same or similar products may agree that each will market its product in a specified geographic area of the country and will not market its product in the territory assigned to other manufacturers.

Accepted Answer

A) True 
 B)False

Question 3

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges, and insurance costs.

Accepted Answer

A) True 
 B)False

Question 4

Art and Mary were good friends who went through high school and college together. Art eventually became a college philosophy professor and Mary went into the business world. Mary became a senior vice-president of a management firm and learned many of the company's trade secrets. Both Art and Mary signed one-year contracts with their respective employers. The contracts contained clauses that provided that they would not compete against their former employers for a period of one year after leaving their jobs. The area covered by the restrictions for both Art and Mary was a radius of 500 miles from the place of employment.
Both Art and Mary resigned and within two months took other jobs. Art went to work for another college 50 miles away, teaching philosophy. Mary took a job 75 miles from her former employment. Her new position was similar to her former job. The former employers sued to enforce the anticompetitive covenants in the original contracts. Discuss the probable outcome of the lawsuits.

Accepted Answer

The case against Art, the professor, wil...

Question 5

In every contract there exists an expressed covenant of good faith and fair dealing.

Accepted Answer

A) True 
 B)False

Question 6

One element involved in the determination of unconscionability is:

Accepted Answer

A)  the comparative bargaining power of the parties.
B)  the opportunity to make a contract for better terms with someone else.
C)  the course of the economy after the contract is made.
D)  whether a loss will be sustained by performance of the contract.

Question 7

Companywide standardized form contracts imposed on a "take-it-or-leave it" basis by a party with superior bargaining strength are called contracts of collusion.

Accepted Answer

A) True 
 B)False

Exam 16: Legality and Public Policy

Correct Answer
verified
The case against Art, the professor, wil...
View Answer

To stabilize the industry, manufacturers of the same or similar products may agree that each will market its product in a specified geographic area of the country and will not market its product in the territory assigned to other manufacturers.

Correct Answer
verified

Which of the following types of contracts might be unenforceable as contrary to public policy?

Correct Answer
verified

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges, and insurance costs.

Correct Answer
verified

Companywide standardized form contracts imposed on a "take-it-or-leave it" basis by a party with superior bargaining strength are called contracts of collusion.

Correct Answer
verified

In every contract there exists an expressed covenant of good faith and fair dealing.

Correct Answer
verified

One element involved in the determination of unconscionability is:

Correct Answer
verified

Exam 16: Legality and Public Policy

Correct AnswerverifiedThe case against Art, the professor, wil...View AnswerShow Answer

To stabilize the industry, manufacturers of the same or similar products may agree that each will market its product in a specified geographic area of the country and will not market its product in the territory assigned to other manufacturers.

Correct AnswerverifiedShow Answer

Which of the following types of contracts might be unenforceable as contrary to public policy?

Correct AnswerverifiedShow Answer

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges, and insurance costs.

Correct AnswerverifiedShow Answer

Companywide standardized form contracts imposed on a "take-it-or-leave it" basis by a party with superior bargaining strength are called contracts of collusion.

Correct AnswerverifiedShow Answer

In every contract there exists an expressed covenant of good faith and fair dealing.

Correct AnswerverifiedShow Answer

One element involved in the determination of unconscionability is:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The case against Art, the professor, wil...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified