BLAW 2200: CH. 11,12,13,14 TEST UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS
Question:
1. Minors have the right to disaffirm their contracts until a
reasonable time after reaching the age of majority.
Answer:
True
Question:
2. Usury occurs when a party gives a loan at an interest rate
below the legal minimum.
Answer:
False
Question:
3. Covenants not to compete in employment contracts are
legal in most states.
Answer:
True
Question:
4. 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.
Answer:
False
Question:
5. In the law, when only one party is responsible for an
illegal agreement, the parties are said to be in pari
delicto.
Answer:
False
Question:
6. When does usury occur?
Answer:
When the interest rate exceeds the legal maximum in a state
,Question:
7. Which laws limit the types of business activities in which
parties can legally engage on Sundays?
Answer:
Sabbath laws
Question:
8. Which of the following would be an example of an
anticompetitive agreement?
Answer:
Rivals within an industry mutually agree on a price that will be offered to
suppliers.
Question:
9. 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:
Answer:
procedural unconscionability.
Question:
10. Under an adhesion contract, negotiations are:
Answer:
nonexistent
Question:
11. Which of the following is an example of substantive
unconscionability?
Answer:
Charging excessive prices in comparison to the cost of products and services
Question:
12. Which of the following businesses cannot enforce an
exculpatory clause?
Answer:
Public utilities
Question:
13. If a person is adjudicated insane, then the contracts they
enter into are:
Answer:
void
, Question:
14. If both parties are equally responsible for an illegal
agreement, the contract is:
Answer:
void
Question:
15. Which of the following is true of a severable contract?
Answer:
It has both legal and illegal portions in the contract.
Question:
16. What is the age of majority in most states?
Answer:
18
Question:
17. Which of the following will not emancipate a minor?
Answer:
Moving out of the house but still getting support from parents
Question:
18. 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:
Answer:
implied ratification.
Question:
19. Which of the following contracts can a minor disaffirm?
Answer:
Contract to purchase a car
Question:
20. An indivisible contract requires complete performance
by ________.
Answer:
both parties
QUESTIONS AND CORRECT ANSWERS
Question:
1. Minors have the right to disaffirm their contracts until a
reasonable time after reaching the age of majority.
Answer:
True
Question:
2. Usury occurs when a party gives a loan at an interest rate
below the legal minimum.
Answer:
False
Question:
3. Covenants not to compete in employment contracts are
legal in most states.
Answer:
True
Question:
4. 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.
Answer:
False
Question:
5. In the law, when only one party is responsible for an
illegal agreement, the parties are said to be in pari
delicto.
Answer:
False
Question:
6. When does usury occur?
Answer:
When the interest rate exceeds the legal maximum in a state
,Question:
7. Which laws limit the types of business activities in which
parties can legally engage on Sundays?
Answer:
Sabbath laws
Question:
8. Which of the following would be an example of an
anticompetitive agreement?
Answer:
Rivals within an industry mutually agree on a price that will be offered to
suppliers.
Question:
9. 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:
Answer:
procedural unconscionability.
Question:
10. Under an adhesion contract, negotiations are:
Answer:
nonexistent
Question:
11. Which of the following is an example of substantive
unconscionability?
Answer:
Charging excessive prices in comparison to the cost of products and services
Question:
12. Which of the following businesses cannot enforce an
exculpatory clause?
Answer:
Public utilities
Question:
13. If a person is adjudicated insane, then the contracts they
enter into are:
Answer:
void
, Question:
14. If both parties are equally responsible for an illegal
agreement, the contract is:
Answer:
void
Question:
15. Which of the following is true of a severable contract?
Answer:
It has both legal and illegal portions in the contract.
Question:
16. What is the age of majority in most states?
Answer:
18
Question:
17. Which of the following will not emancipate a minor?
Answer:
Moving out of the house but still getting support from parents
Question:
18. 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:
Answer:
implied ratification.
Question:
19. Which of the following contracts can a minor disaffirm?
Answer:
Contract to purchase a car
Question:
20. An indivisible contract requires complete performance
by ________.
Answer:
both parties
