Business Law 3201 LSU Fry Exam 3
Test Questions and Answers 100%
Correct 2025-2026 Updated.
Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for
any damages to packages whether or not through the fault or negligence of our employees.
Send packages at your own risk." Mary reads this clause but sends her watch back to its
manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the
package for a ball and tosses it to his buddy. Mary is: - Answer Likely to collect from DP
because it is a common carrier.
A(n) ____ is a measure designed to protect the public from unqualified practitioners. - Answer
Regulatory license.
Before granting an injunction enjoining a former employee from competing in a described
territory, the courts insist that the employer demonstrate that the restriction is: - Answer
Necessary to protect the employer's legitimate interest.
John operates a small repair business and is in desperate need of a certain type of building
material. He obtains the material from a large corporation, but is charged a grossly
unreasonable price and is forced to buy other material he does not need. In view of the buyer's
unequal bargaining power and unreasonable terms of the contract, this may be a case of: -
Answer Substantive unconscionability.
Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond
the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage
in the same business anywhere within the state for a period of three years. - Answer (d)
Both (b) and (c):
(b) The agreement is unreasonable.
(c) The agreement unduly interferes with the interests of the public.
Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond
the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage
in the same business anywhere in River City for a period of five years. - Answer The
geographic restraint is reasonable.
, (a) Refuse to enforce the contract.
(b) Enforce the part of the contract that is not unconscionable.
(c) Limit the application of any unconscionable clause in order to avoid an unconscionable
result.
Sarah is working hard on the mayoral campaign of Timothy. She thinks that just a few more
votes could win the election, so she promises to pay her friend Violet $50 to register and vote.
Violet does so, but Timothy loses the election, and Sarah now refuses to pay. - Answer This
agreement is unenforceable and opposed to public policy.
Which of the following would generally be considered to be a revenue-raising licensing law? -
Answer A statute requiring that salespeople be licensed, but not establishing any
educational or training requirements
Numerous states impose no limit on the rate of interest that may be charged on: - Answer
(d) All of the above:
(a) Loans to corporations.
(b) Credit card transactions.
(c) Loans made by certain designated types of lenders.
Non-compete agreements drafted for employees of Internet companies: - Answer Are
subject to larger geographic restrictions than for other types of companies.
Patrick agrees to sell two different goods to his friend Ron, a retailer. One item is legal, and one
item is illegal. The contract price is $2,000. - Answer (d) The court may view the contract as
in (a) or (b):
(a) Patrick may not recover payment for either of the goods if delivered.
(b) Patrick may recover for the legal item, but he may not recover for the illegal item.
A contract prepared on a standard form and offering terms on a take-it-or-leave-it basis is called:
- Answer An adhesion contract.
Custom Sales and Rentals uses a four-page contract with important contract terms buried in the
Test Questions and Answers 100%
Correct 2025-2026 Updated.
Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for
any damages to packages whether or not through the fault or negligence of our employees.
Send packages at your own risk." Mary reads this clause but sends her watch back to its
manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the
package for a ball and tosses it to his buddy. Mary is: - Answer Likely to collect from DP
because it is a common carrier.
A(n) ____ is a measure designed to protect the public from unqualified practitioners. - Answer
Regulatory license.
Before granting an injunction enjoining a former employee from competing in a described
territory, the courts insist that the employer demonstrate that the restriction is: - Answer
Necessary to protect the employer's legitimate interest.
John operates a small repair business and is in desperate need of a certain type of building
material. He obtains the material from a large corporation, but is charged a grossly
unreasonable price and is forced to buy other material he does not need. In view of the buyer's
unequal bargaining power and unreasonable terms of the contract, this may be a case of: -
Answer Substantive unconscionability.
Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond
the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage
in the same business anywhere within the state for a period of three years. - Answer (d)
Both (b) and (c):
(b) The agreement is unreasonable.
(c) The agreement unduly interferes with the interests of the public.
Andrew owns a store in Polk County. His trade extends throughout River City, but not beyond
the county limits. He sells his store to Betty and, as part of the transaction, agrees not to engage
in the same business anywhere in River City for a period of five years. - Answer The
geographic restraint is reasonable.
, (a) Refuse to enforce the contract.
(b) Enforce the part of the contract that is not unconscionable.
(c) Limit the application of any unconscionable clause in order to avoid an unconscionable
result.
Sarah is working hard on the mayoral campaign of Timothy. She thinks that just a few more
votes could win the election, so she promises to pay her friend Violet $50 to register and vote.
Violet does so, but Timothy loses the election, and Sarah now refuses to pay. - Answer This
agreement is unenforceable and opposed to public policy.
Which of the following would generally be considered to be a revenue-raising licensing law? -
Answer A statute requiring that salespeople be licensed, but not establishing any
educational or training requirements
Numerous states impose no limit on the rate of interest that may be charged on: - Answer
(d) All of the above:
(a) Loans to corporations.
(b) Credit card transactions.
(c) Loans made by certain designated types of lenders.
Non-compete agreements drafted for employees of Internet companies: - Answer Are
subject to larger geographic restrictions than for other types of companies.
Patrick agrees to sell two different goods to his friend Ron, a retailer. One item is legal, and one
item is illegal. The contract price is $2,000. - Answer (d) The court may view the contract as
in (a) or (b):
(a) Patrick may not recover payment for either of the goods if delivered.
(b) Patrick may recover for the legal item, but he may not recover for the illegal item.
A contract prepared on a standard form and offering terms on a take-it-or-leave-it basis is called:
- Answer An adhesion contract.
Custom Sales and Rentals uses a four-page contract with important contract terms buried in the
