Question 1

There is no such thing as usury laws any more.

Accepted Answer

A) True 
 B)False

Question 2

Although a court may determine the agreement made illegal, restitution will be allowed if the agreement requires one side to pay an amount disproportionate in relation to the contravention of public policy involved.

Accepted Answer

A) True 
 B)False

Question 3

Consolidated Amalgamated Inc. pays a lobbyist $20,000 to draft and lobby legislators for a bill that would give Consolidated a large tax cut. The agreement is a violation of public policy.

Accepted Answer

A) True 
 B)False

Question 4

A contract of adhesion is almost always unenforceable as unconscionable.

Accepted Answer

A) True 
 B)False  False

Question 5

Which of the following bargains does the court consider illegal?

Accepted Answer

A)   Partial illegality
B)   Party not equally at fault
C)   Excusable ignorance
D)   Contracts interfering with family relations
E)   Party withdrawing before performance

Question 6

Which of the following is made illegal according to common law?

Accepted Answer

A)   Gambling contracts
B)   Unconscionable contracts
C)   Sunday contracts
D)   Usury
E)   Licensing contracts B

Question 7

What is an "unconscionable" contract is defined by both Article 2 and the common law of contracts.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is/are true?

Accepted Answer

A)   Alice and Max agree to bet on a soccer game and deliver their money to Ross. However, before the payout, Alice decides she wants out. She can recover her money.
B)   A truck driver, forbidden by federal law from working overtime, nevertheless does; he is entitled to no pay for the overtime.
C)   Husband and wife entered into a post-marital agreement whereby the husband granted the wife all of his interest of the parties' community property should he use illicit and illegal drugs. The agreement is not enforceable.
D)   Bespoke Tailors signs a contract with Trymore Trucking containing a clause limiting the trucking company's liability for any loss of cargo to $50, unless otherwise agreed; nothing else was agreed. Trymore's driver stole $250,000 worth of goods (and the truck) , which were never recovered. The limitation of liability is so small in comparison to the loss that it will be struck down as unconscionable.
E)   Two of the above are true [a and c].

Question 9

Charging interest in excess of the legal limit is known as _____.

Accepted Answer

A)   restraint of trade
B)   predatory lending
C)   debt bondage
D)   usury
E)   perjury

Question 10

With the spread of anti-tax enthusiasms over the last 30-some years, all kinds of gambling have been legalized and regulated.

Accepted Answer

A) True 
 B)False

Question 11

Property settlements before, during, or upon the breakup of a marriage are generally enforceable, since property is considered to be an essential incident of marriage.

Accepted Answer

A) True 
 B)False

Question 12

If a contract is illegal, a promisee who has already performed under the contract can neither obtain performance of the act for which he bargained nor recover the money he paid or the value of the performance he made.

Accepted Answer

A) True 
 B)False

Question 13

A contract presented to the offeree to take or leave without bargaining is known as a(n)  _____.

Accepted Answer

A)   contract of adhesion
B)   aleatory contract
C)   personal contract
D)   conditional contract
E)   unilateral contract

Question 14

Failure to hold a regulatory license bars recovery, but the absence of a revenue or registration does not.

Accepted Answer

A) True 
 B)False

Question 15

Bargains are illegal if they involve committing a crime or a tort, but not if they involve an activity contrary to public policy.

Accepted Answer

A) True 
 B)False

Question 16

If an attorney charges his client beyond what the statute allowed for procuring for the client a government pension, the pensioner cannot get the excess amount from the attorney.

Accepted Answer

A) True 
 B)False

Question 17

Under the blue-pencil rule, a court can delete from the agreement only that part that is unreasonable to compete thenceforth.

Accepted Answer

A) True 
 B)False

Question 18

A term may be substantively unconscionable if it is imposed upon the weaker party because of fine print.

Accepted Answer

A) True 
 B)False

Question 19

State the three-step analysis for licensing.

Accepted Answer

-Check whether a license is required.
-D...

Question 20

Tom's promise to pay his son Jack $100,000 if he refrains from marrying for 20 years would be enforceable.

Accepted Answer

A) True 
 B)False  False

Exam 12: Legality

There is no such thing as usury laws any more.

Correct AnswerverifiedShow Answer

Although a court may determine the agreement made illegal, restitution will be allowed if the agreement requires one side to pay an amount disproportionate in relation to the contravention of public policy involved.

Correct AnswerverifiedShow Answer

Consolidated Amalgamated Inc. pays a lobbyist $20,000 to draft and lobby legislators for a bill that would give Consolidated a large tax cut. The agreement is a violation of public policy.

Correct AnswerverifiedShow Answer

A contract of adhesion is almost always unenforceable as unconscionable.

Correct AnswerverifiedFalse

Which of the following bargains does the court consider illegal?

Correct AnswerverifiedShow Answer

Which of the following is made illegal according to common law?

Correct AnswerverifiedB

What is an "unconscionable" contract is defined by both Article 2 and the common law of contracts.

Correct AnswerverifiedShow Answer

Which of the following is/are true?

Correct AnswerverifiedShow Answer

Charging interest in excess of the legal limit is known as _____.

Correct AnswerverifiedShow Answer

With the spread of anti-tax enthusiasms over the last 30-some years, all kinds of gambling have been legalized and regulated.

Correct AnswerverifiedShow Answer

Property settlements before, during, or upon the breakup of a marriage are generally enforceable, since property is considered to be an essential incident of marriage.

Correct AnswerverifiedShow Answer

If a contract is illegal, a promisee who has already performed under the contract can neither obtain performance of the act for which he bargained nor recover the money he paid or the value of the performance he made.

Correct AnswerverifiedShow Answer

A contract presented to the offeree to take or leave without bargaining is known as a(n) _____.

Correct AnswerverifiedShow Answer

Failure to hold a regulatory license bars recovery, but the absence of a revenue or registration does not.

Correct AnswerverifiedShow Answer

Bargains are illegal if they involve committing a crime or a tort, but not if they involve an activity contrary to public policy.

Correct AnswerverifiedShow Answer

If an attorney charges his client beyond what the statute allowed for procuring for the client a government pension, the pensioner cannot get the excess amount from the attorney.

Correct AnswerverifiedShow Answer

Under the blue-pencil rule, a court can delete from the agreement only that part that is unreasonable to compete thenceforth.

Correct AnswerverifiedShow Answer

A term may be substantively unconscionable if it is imposed upon the weaker party because of fine print.

Correct AnswerverifiedShow Answer

State the three-step analysis for licensing.

Correct Answerverified-Check whether a license is required.-D...View AnswerShow Answer

Tom's promise to pay his son Jack $100,000 if he refrains from marrying for 20 years would be enforceable.

Correct AnswerverifiedFalse

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
-Check whether a license is required.
-D...
View Answer

Correct Answer
verified
False