BLAW 2200 TEST CH. 11 - 14 QUESTIONS WITH
VERIFIED ANSWERS
Minors have the right to disaffirm their contracts until a reasonable time after reaching
the age of majority. - Answers - True
Usury occurs when a party gives a loan at an interest rate below the legal minimum. -
Answers - False
Covenants not to compete in employment contracts are legal in most states. - Answers -
True
A basic test to determine whether an exculpatory clause is unenforceable is to see if the
enforcing party engages in a business indirectly related to the public interest. - Answers
- False
In the law, when only one party is responsible for an illegal agreement, the parties are
said to be in pari delicto. - Answers - False
When does usury occur? - Answers - When the interest rate exceeds the legal
maximum in a state
Which laws limit the types of business activities in which parties can legally engage on
Sundays? - Answers - Sabbath laws
Which of the following would be an example of an anticompetitive agreement? -
Answers - Rivals within an industry mutually agree on a price that will be offered to
suppliers.
Unconscionability that relates to conditions that would impair one party's understanding
of a contract and to the integration of terms into a contract is referred to as: - Answers -
procedural unconscionability.
Under an adhesion contract, negotiations are: - Answers - nonexistent
Which of the following is an example of substantive unconscionability? - Answers -
Charging excessive prices in comparison to the cost of products and services
Which of the following businesses cannot enforce an exculpatory clause? - Answers -
Public utilities
If a person is adjudicated insane, then the contracts they enter into are: - Answers - void
, If both parties are equally responsible for an illegal agreement, the contract is: -
Answers - void
Which of the following is true of a severable contract? - Answers - It has both legal and
illegal portions in the contract.
What is the age of majority in most states? - Answers - 18
Which of the following will not emancipate a minor? - Answers - Moving out of the house
but still getting support from parents
If Mandy purchased a car as a minor but continued to use it for a year after reaching
majority, the contract is no longer voidable because of: - Answers - implied ratification.
Which of the following contracts can a minor disaffirm? - Answers - Contract to
purchase a car
An indivisible contract requires complete performance by ________. - Answers - both
parties
Which of the following types of agreements is not a type of agreement that is generally
illegal in many states? - Answers - Agreements for the sale of a used product.
A door-to-door hearing aid salesman specifically targets elderly clients. When the clients
ask questions about the contract, the salesman is not truthful with them entirely. The
answers to their questions are usually found on the tiny, hard-to-read print on the very
back of the long contract the clients must sign. The salesman knows that his clients
have poor vision and hearing, and uses this to his advantage in his sales techniques
and with the small contractual terms.
The scenario above is a possible example of which type of agreement? - Answers -
Procedural unconscionability
In some states, courts consider the purpose of the licensing statute when determining
the effect of the agreement. If a licensing statute is intended simply to generate
revenue, then the contract of an unlicensed person is ________. - Answers - valid
Covenants not to compete in conjunction with the sale of a business are generally
________ if they are for a reasonable length of time and involve a reasonable location. -
Answers - enforceable
A(n) ________blank releases one of the contracting parties from all liability, regardless
of who is at fault or what injury is suffered. - Answers - exculpatory clause
Suppose Bekah agrees to do bodywork on Fatima's car. In exchange, Fatima agrees to
be a poker dealer at Bekah's underground casino. In the state where Bekah and Fatima
VERIFIED ANSWERS
Minors have the right to disaffirm their contracts until a reasonable time after reaching
the age of majority. - Answers - True
Usury occurs when a party gives a loan at an interest rate below the legal minimum. -
Answers - False
Covenants not to compete in employment contracts are legal in most states. - Answers -
True
A basic test to determine whether an exculpatory clause is unenforceable is to see if the
enforcing party engages in a business indirectly related to the public interest. - Answers
- False
In the law, when only one party is responsible for an illegal agreement, the parties are
said to be in pari delicto. - Answers - False
When does usury occur? - Answers - When the interest rate exceeds the legal
maximum in a state
Which laws limit the types of business activities in which parties can legally engage on
Sundays? - Answers - Sabbath laws
Which of the following would be an example of an anticompetitive agreement? -
Answers - Rivals within an industry mutually agree on a price that will be offered to
suppliers.
Unconscionability that relates to conditions that would impair one party's understanding
of a contract and to the integration of terms into a contract is referred to as: - Answers -
procedural unconscionability.
Under an adhesion contract, negotiations are: - Answers - nonexistent
Which of the following is an example of substantive unconscionability? - Answers -
Charging excessive prices in comparison to the cost of products and services
Which of the following businesses cannot enforce an exculpatory clause? - Answers -
Public utilities
If a person is adjudicated insane, then the contracts they enter into are: - Answers - void
, If both parties are equally responsible for an illegal agreement, the contract is: -
Answers - void
Which of the following is true of a severable contract? - Answers - It has both legal and
illegal portions in the contract.
What is the age of majority in most states? - Answers - 18
Which of the following will not emancipate a minor? - Answers - Moving out of the house
but still getting support from parents
If Mandy purchased a car as a minor but continued to use it for a year after reaching
majority, the contract is no longer voidable because of: - Answers - implied ratification.
Which of the following contracts can a minor disaffirm? - Answers - Contract to
purchase a car
An indivisible contract requires complete performance by ________. - Answers - both
parties
Which of the following types of agreements is not a type of agreement that is generally
illegal in many states? - Answers - Agreements for the sale of a used product.
A door-to-door hearing aid salesman specifically targets elderly clients. When the clients
ask questions about the contract, the salesman is not truthful with them entirely. The
answers to their questions are usually found on the tiny, hard-to-read print on the very
back of the long contract the clients must sign. The salesman knows that his clients
have poor vision and hearing, and uses this to his advantage in his sales techniques
and with the small contractual terms.
The scenario above is a possible example of which type of agreement? - Answers -
Procedural unconscionability
In some states, courts consider the purpose of the licensing statute when determining
the effect of the agreement. If a licensing statute is intended simply to generate
revenue, then the contract of an unlicensed person is ________. - Answers - valid
Covenants not to compete in conjunction with the sale of a business are generally
________ if they are for a reasonable length of time and involve a reasonable location. -
Answers - enforceable
A(n) ________blank releases one of the contracting parties from all liability, regardless
of who is at fault or what injury is suffered. - Answers - exculpatory clause
Suppose Bekah agrees to do bodywork on Fatima's car. In exchange, Fatima agrees to
be a poker dealer at Bekah's underground casino. In the state where Bekah and Fatima
