BUL 5810 CORE REVIEWS ANSWERS AND
QUESTIONS SET A+
✔✔The sole hospital in a city offers a standard patient care agreement. The contract is
prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a
contract is called:
a. exculpatory.
b. a usurious contract.
c. an adhesion contract.
d. an illegal restraint of trade. - ✔✔c. an adhesion contract.
✔✔__________ is a set of oppressive or grossly unfair contract terms or exclusions.
a. Procedural unconscionability
b. An exculpatory clause
c. Substantive unconscionability
d. Tortious conduct - ✔✔c. Substantive unconscionability
✔✔In a __________, the parties stipulate that one shall win and the other lose
depending on the outcome of an event in which their only interest is the possibility of
such gain or loss?
a. monopoly
b. usury
c. wager
d. All of these are correct. - ✔✔c. wager
✔✔A given agreement may not violate any statute but may still be so offensive to
society that courts feel that enforcing the contract would be:
a. fraudulent.
b. contrary to public policy.
c. illegal lobbying.
,d. unfair to merchants. - ✔✔b. contrary to public policy.
✔✔Marilyn sells her highly successful travel agency to Adelle. In the sales contract,
Marilyn agrees never to open a travel agency in the state. Which of the following best
describes this contract clause?
a. Binding as fair protection.
b. Unenforceable as a violation of public policy.
c. Valid as a reasonable restraint on trade.
d. Void as an illegal violation of a statute. - ✔✔b. Unenforceable as a violation of public
policy.
✔✔Juliet has wagered $500, which Lance, as her bookie, is holding, on a prize fight. If,
before the race starts, Juliet wants to take back her money and withdraw from the
transaction:
a. Lance can successfully sue for breach.
b. Juliet, by law, cannot withdraw from the transaction.
c. Lance, by law, cannot withdraw from the transaction.
d. Juliet cannot sue to recover any money because the contract to wager is illegal and
unenforceable. - ✔✔d. Juliet cannot sue to recover any money because the contract to
wager is illegal and unenforceable.
✔✔Fred operates a fledgling remodeling business and is in desperate need of a certain
type of drywall. He obtains the material from Megaworks, 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:
a. discrimination.
b. substantive unconscionability.
c. supervening illegality
d. restraint of trade. - ✔✔b. substantive unconscionability.
✔✔Nila is working hard on Sam's election campaign for the legislature. She thinks that
just a few more votes could win the election, so she promises to pay her friend Daphne
$50 if she will register and vote for Sam. Daphne does so, but Sam loses the election,
and Nila now refuses to pay. This:
a. agreement is enforceable.
b. is an unconscionable contract covered by the UCC.
c. is an agreement to obstruct the administration of justice.
d. agreement is unenforceable and opposed to public policy. - ✔✔d. agreement is
unenforceable and opposed to public policy.
, ✔✔Cinnful Buns, Inc. entered into a contract with Darius under the terms of which
Darius would receive $10,000 if he stole the trade secret recipe from the leading
competitor of Cinnful Buns. Darius performed his end of the agreement by delivering the
recipe. Cinnful Bunns now refuses to pay Darius for his services. Darius has this option,
he:
a. may recover based upon the express contract of the parties.
b. may recover based upon a quasi-contractual theory in order to prevent the unjust
enrichment of Cinnful.
c. will be able to recover based upon promissory estoppel, because he has
detrimentally relied upon the promises made by Cinnful.
d. will be unable to recover, because this is an illegal contract. - ✔✔d. will be unable to
recover, because this is an illegal contract.
✔✔Buyer and Seller have entered into a contract for the sale of several goods worth
hundreds of thousands of dollars. In the contract, which was prepared by Seller, Seller
included a clause that stated conspicuously "If Seller sues Buyer for any and all claims
related to this contract, Buyer hereby waives all available defenses in law and equity." If
the court finds this clause substantively unconscionable, what would be the reason?
a. This was unfair negotiation process.
b. Seller obscured this waiver clause.
c. Such a clause is grossly unfair because it takes away any legal defenses that Buyer
has.
d. None of the answers are correct. - ✔✔c. Such a clause is grossly unfair because it
takes away any legal defenses that Buyer has.
✔✔Buyer and Seller have entered into a contract for the sale of several goods worth
hundreds of thousands of dollars. In the contract, seller includes an "as is" warranty
clause that is in extremely small print and inconspicuous. If the court finds this clause
procedural unconscionable, what would be the reason?
a. Such a clause is oppressive.
b. Seller obscured this warranty clause.
c. Such a clause is grossly unfair because it takes away any legal defenses that Buyer
has.
d. None of these answers are correct. - ✔✔b. Seller obscured this warranty clause.
✔✔Jacqueline entered into an employment contract with The Umbrella Corporation that
contained a covenant not to compete, as well as other provisions involving salary, a
severance package, holiday compensation, and other employment-related benefits. If
the court finds only the covenant not to compete illegal, what effect will such a ruling
have on the remainder of the contract?
QUESTIONS SET A+
✔✔The sole hospital in a city offers a standard patient care agreement. The contract is
prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a
contract is called:
a. exculpatory.
b. a usurious contract.
c. an adhesion contract.
d. an illegal restraint of trade. - ✔✔c. an adhesion contract.
✔✔__________ is a set of oppressive or grossly unfair contract terms or exclusions.
a. Procedural unconscionability
b. An exculpatory clause
c. Substantive unconscionability
d. Tortious conduct - ✔✔c. Substantive unconscionability
✔✔In a __________, the parties stipulate that one shall win and the other lose
depending on the outcome of an event in which their only interest is the possibility of
such gain or loss?
a. monopoly
b. usury
c. wager
d. All of these are correct. - ✔✔c. wager
✔✔A given agreement may not violate any statute but may still be so offensive to
society that courts feel that enforcing the contract would be:
a. fraudulent.
b. contrary to public policy.
c. illegal lobbying.
,d. unfair to merchants. - ✔✔b. contrary to public policy.
✔✔Marilyn sells her highly successful travel agency to Adelle. In the sales contract,
Marilyn agrees never to open a travel agency in the state. Which of the following best
describes this contract clause?
a. Binding as fair protection.
b. Unenforceable as a violation of public policy.
c. Valid as a reasonable restraint on trade.
d. Void as an illegal violation of a statute. - ✔✔b. Unenforceable as a violation of public
policy.
✔✔Juliet has wagered $500, which Lance, as her bookie, is holding, on a prize fight. If,
before the race starts, Juliet wants to take back her money and withdraw from the
transaction:
a. Lance can successfully sue for breach.
b. Juliet, by law, cannot withdraw from the transaction.
c. Lance, by law, cannot withdraw from the transaction.
d. Juliet cannot sue to recover any money because the contract to wager is illegal and
unenforceable. - ✔✔d. Juliet cannot sue to recover any money because the contract to
wager is illegal and unenforceable.
✔✔Fred operates a fledgling remodeling business and is in desperate need of a certain
type of drywall. He obtains the material from Megaworks, 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:
a. discrimination.
b. substantive unconscionability.
c. supervening illegality
d. restraint of trade. - ✔✔b. substantive unconscionability.
✔✔Nila is working hard on Sam's election campaign for the legislature. She thinks that
just a few more votes could win the election, so she promises to pay her friend Daphne
$50 if she will register and vote for Sam. Daphne does so, but Sam loses the election,
and Nila now refuses to pay. This:
a. agreement is enforceable.
b. is an unconscionable contract covered by the UCC.
c. is an agreement to obstruct the administration of justice.
d. agreement is unenforceable and opposed to public policy. - ✔✔d. agreement is
unenforceable and opposed to public policy.
, ✔✔Cinnful Buns, Inc. entered into a contract with Darius under the terms of which
Darius would receive $10,000 if he stole the trade secret recipe from the leading
competitor of Cinnful Buns. Darius performed his end of the agreement by delivering the
recipe. Cinnful Bunns now refuses to pay Darius for his services. Darius has this option,
he:
a. may recover based upon the express contract of the parties.
b. may recover based upon a quasi-contractual theory in order to prevent the unjust
enrichment of Cinnful.
c. will be able to recover based upon promissory estoppel, because he has
detrimentally relied upon the promises made by Cinnful.
d. will be unable to recover, because this is an illegal contract. - ✔✔d. will be unable to
recover, because this is an illegal contract.
✔✔Buyer and Seller have entered into a contract for the sale of several goods worth
hundreds of thousands of dollars. In the contract, which was prepared by Seller, Seller
included a clause that stated conspicuously "If Seller sues Buyer for any and all claims
related to this contract, Buyer hereby waives all available defenses in law and equity." If
the court finds this clause substantively unconscionable, what would be the reason?
a. This was unfair negotiation process.
b. Seller obscured this waiver clause.
c. Such a clause is grossly unfair because it takes away any legal defenses that Buyer
has.
d. None of the answers are correct. - ✔✔c. Such a clause is grossly unfair because it
takes away any legal defenses that Buyer has.
✔✔Buyer and Seller have entered into a contract for the sale of several goods worth
hundreds of thousands of dollars. In the contract, seller includes an "as is" warranty
clause that is in extremely small print and inconspicuous. If the court finds this clause
procedural unconscionable, what would be the reason?
a. Such a clause is oppressive.
b. Seller obscured this warranty clause.
c. Such a clause is grossly unfair because it takes away any legal defenses that Buyer
has.
d. None of these answers are correct. - ✔✔b. Seller obscured this warranty clause.
✔✔Jacqueline entered into an employment contract with The Umbrella Corporation that
contained a covenant not to compete, as well as other provisions involving salary, a
severance package, holiday compensation, and other employment-related benefits. If
the court finds only the covenant not to compete illegal, what effect will such a ruling
have on the remainder of the contract?
