©BRIGHTSTARS EXAM SOLUTIONS
11/14/2024 12:19 PM
BMGT380 Chapter 15- Illegality Exam Study
Guide.
Public Policy - answer✔widely shared view about ideas, interests, institutions, or freedoms to
promote pubic welfare
*changes over time, rarely absolute*
Illegal Agreement - answer✔i. violates statutes
ii. violate public policy determined by courts
iii. unconscionable agreements and contracts of adhesion
Violations of Public Policy - answer✔i. cannot make agreements to commit crimes
ii. cannot make agreements that violate crimes
- needs to be a direct connection of illegal conduct
Licesnsing laws - answer✔Cannot agree to contract with someone not properly licensed, i.e.
regulatory licenses to protect public interest
Exceptions are for licenses that are used for revenue purposes only (does not threaten public
interest)
Agreements in Restraint of Competition - answer✔if SOLE purpose of an agreement is to
restrain competition, it violates public policy and is illegal
-Enforceability of non-competition clauses
i. serves legitimate business purpose
ii. restriction must be reasonable in time, location, and scope
iii. cannot impose undue hardships
1|Page
11/14/2024 12:19 PM
BMGT380 Chapter 15- Illegality Exam Study
Guide.
Public Policy - answer✔widely shared view about ideas, interests, institutions, or freedoms to
promote pubic welfare
*changes over time, rarely absolute*
Illegal Agreement - answer✔i. violates statutes
ii. violate public policy determined by courts
iii. unconscionable agreements and contracts of adhesion
Violations of Public Policy - answer✔i. cannot make agreements to commit crimes
ii. cannot make agreements that violate crimes
- needs to be a direct connection of illegal conduct
Licesnsing laws - answer✔Cannot agree to contract with someone not properly licensed, i.e.
regulatory licenses to protect public interest
Exceptions are for licenses that are used for revenue purposes only (does not threaten public
interest)
Agreements in Restraint of Competition - answer✔if SOLE purpose of an agreement is to
restrain competition, it violates public policy and is illegal
-Enforceability of non-competition clauses
i. serves legitimate business purpose
ii. restriction must be reasonable in time, location, and scope
iii. cannot impose undue hardships
1|Page
