Question 1

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself?

Accepted Answer

A)   Ratification
B)   Disaffirmance
C)   Emancipation
D)   Legal release
E)   ReaffirmanceF) A) and B)
G) None of the above

Question 2

Maurice wishes to purchase a small restaurant named "Tasty Burger" in his community from Todd who tells Maurice that, while he loves the teenagers who have frequented his establishment, he is tired of flipping burgers and wants to spend more time fishing on the lake. Maurice has Todd sign a covenant not to compete prohibiting Todd from opening a restaurant within 25 miles of Tasty Burger for five years. Assuming that the covenant was drafted properly, is it likely to be enforced? Discuss arguments for and against covenants not to compete in the sale of a business.

Accepted Answer

The covenant is likely to be enforced. A...

Question 3

Which of the following is true in regard to how Chinese law treats contracts entered into by minors?

Accepted Answer

A)   Because parents are considered responsible for their children's actions, parents are held responsible for any contracts entered into by their minor children.
B)   Minors are held responsible only for contracts involving necessities.
C)   Minors are not held responsible for any contracts, and contracting with a minor is illegal subjecting the adult contracting party to prison time.
D)   Children between ten and eighteen are deemed competent for entering into certain contracts appropriate to each child's mental state.
E)   Children are held responsible only for contracts involving educational expenses.F) D) and E)
G) C) and E)

Question 4

A[n] _____________ contract is one requiring complete performance by both parties, even if it appears as if the contract contains multiple parts.

Accepted Answer

A)   Adhesion
B)   Divisible
C)   Justifiable
D)   Indivisible
E)   IndependentF) B) and D)
G) B) and C)

Question 5

When must a disaffirmance of a contract based on minority occur?

Accepted Answer

A)   Before or within a reasonable time of the minor's reaching the age of majority.
B)   Within 30 days of the minor's reaching the age of majority.
C)   Within 60 days of the minor's reaching the age of majority.
D)   Within 90 days of the minor's reaching the age of majority.
E)   Within one year of the minor's reaching the age of majority.F) A) and B)
G) A) and D)

Question 6

In the law, when both parties are equally responsible for an illegal agreement, it is known as in pari delicto.

Accepted Answer

A) True 
 B)False

Question 7

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Accepted Answer

A)   50
B)   49
C)   45
D)   30
E)   25F) A) and B)
G) A) and E)

Question 8

Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited.

Accepted Answer

A) True 
 B)False

Question 9

How many states engage in at least some regulation of gambling?

Accepted Answer

A)   50
B)   47
C)   40
D)   35
E)   10F) C) and D)
G) A) and B)

Question 10

Today in all but _____________ states, a minor is someone under the age of _____________.

Accepted Answer

A)   2; 18
B)   3; 18
C)   5; 18
D)   5; 21
E)   7; 21F) A) and B)
G) A) and C)

Question 11

A minor who chooses to disaffirm a contract may disaffirm the entire contract or any part of it.

Accepted Answer

A) True 
 B)False  False

Question 12

A party who claims that he or she could not understand contractual terms because of tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following?

Accepted Answer

A)   Substantive unconscionability
B)   Adhesion conscionability
C)   Procedural unconscionability
D)   Exculpatory clauses
E)   An in pari delicto agreement.F) A) and C)
G) A) and E) C

Question 13

Reference - Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. What type of clause did Janice have Treena sign to the effect that she would not hold Janice liable for any bad results?

Accepted Answer

A)   Adhesion
B)   Exculpatory
C)   Procedural
D)   Substantive
E)   MalfeasanceF) B) and D)
G) C) and E)

Question 14

Reference - Cheap Motorcycle. Tony, a hateful, disgruntled, business law teacher notices that a student, Peter, who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass; and, in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs. Which of the following is an appropriate term for the contract drawn up by Tony?

Accepted Answer

A)   Adhesion
B)   Valid
C)   Misapplied
D)   Misdrafted
E)   MisdirectedF) B) and E)
G) B) and D)

Question 15

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Accepted Answer

A)   Persons suffering from a mental illness never have capacity to enter into a binding contract.
B)   Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they do not present a danger to themselves or others.
C)   Persons suffering from a mental illness have full capacity to enter into a binding contract so long as they inform the other party that they are in treatment.
D)   Persons suffering from a mental illness may have full, limited, or no legal capacity to enter into a binding contract depending on the nature and extent of their mental deficiency.
E)   Persons who suffer from a mental illness always have full capacity to enter into a binding contract.F) B) and D)
G) A) and B)

Question 16

Which of the following is the maximum interest rate?

Accepted Answer

A)   20%.
B)   15%
C)   12%
D)   10%
E)   It varies depending on the state involved.F) A) and B)
G) B) and C)

Question 17

In most states a person is given full legal capacity to enter into contracts when he or she becomes _____________ before reaching the age of majority.

Accepted Answer

A)   Emancipated
B)   Freed
C)   Released
D)   Employed
E)   Either released or employedF) B) and C)
G) C) and D)

Question 18

As a general rule, parents are not liable for contracts entered into by their minor children.

Accepted Answer

A) True 
 B)False  True

Question 19

Which of the following involves overly harsh or lopsided substance in an agreement?

Accepted Answer

A)   Substantive unconscionability
B)   Adhesion conscionability
C)   Procedural unconscionability
D)   Exculpatory clauses
E)   An in pari delicto agreement.F) All of the above
G) A) and C)

Question 20

Reference - Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liabilities before she did anything with Treena's hair. Treena, however, sued anyway. Which of the following is true regarding the enforceability of the clause providing that Treena not hold Janice liable for any bad results?

Accepted Answer

A)   Such clauses are enforced so long as no duress was applied.
B)   Such clauses are never enforced.
C)   Such clauses are always enforced so long as the complaining party had the capacity to contract.
D)   Such clauses are enforced unless a person sustains a physical injury, and hair damage would not qualify as a physical injury.
E)   Such clauses might be enforced if the contract involves private businesses providing nonessential services.F) A) and B)
G) C) and D)

Exam 10: Consideration

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself?

Correct Answer
verified

Correct Answer
verified
The covenant is likely to be enforced. A...
View Answer

Which of the following is true in regard to how Chinese law treats contracts entered into by minors?

Correct Answer
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A[n] _____________ contract is one requiring complete performance by both parties, even if it appears as if the contract contains multiple parts.

Correct Answer
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When must a disaffirmance of a contract based on minority occur?

Correct Answer
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In the law, when both parties are equally responsible for an illegal agreement, it is known as in pari delicto.

Correct Answer
verified

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Correct Answer
verified

Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited.

Correct Answer
verified

How many states engage in at least some regulation of gambling?

Correct Answer
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Today in all but _ states, a minor is someone under the age of _.

Correct Answer
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A minor who chooses to disaffirm a contract may disaffirm the entire contract or any part of it.

Correct Answer
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False

A party who claims that he or she could not understand contractual terms because of tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following?

Correct Answer
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C

Correct Answer
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Correct Answer
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Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Correct Answer
verified

Which of the following is the maximum interest rate?

Correct Answer
verified

In most states a person is given full legal capacity to enter into contracts when he or she becomes _____________ before reaching the age of majority.

Correct Answer
verified

As a general rule, parents are not liable for contracts entered into by their minor children.

Correct Answer
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True

Which of the following involves overly harsh or lopsided substance in an agreement?

Correct Answer
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Correct Answer
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Exam 10: Consideration

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe covenant is likely to be enforced. A...View AnswerShow Answer

Which of the following is true in regard to how Chinese law treats contracts entered into by minors?

Correct AnswerverifiedShow Answer

A[n] _____________ contract is one requiring complete performance by both parties, even if it appears as if the contract contains multiple parts.

Correct AnswerverifiedShow Answer

When must a disaffirmance of a contract based on minority occur?

Correct AnswerverifiedShow Answer

In the law, when both parties are equally responsible for an illegal agreement, it is known as in pari delicto.

Correct AnswerverifiedShow Answer

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Correct AnswerverifiedShow Answer

Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited.

Correct AnswerverifiedShow Answer

How many states engage in at least some regulation of gambling?

Correct AnswerverifiedShow Answer

Today in all but _____________ states, a minor is someone under the age of _____________.

Correct AnswerverifiedShow Answer

A minor who chooses to disaffirm a contract may disaffirm the entire contract or any part of it.

Correct AnswerverifiedFalse

A party who claims that he or she could not understand contractual terms because of tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following?

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Correct AnswerverifiedShow Answer

Which of the following is the maximum interest rate?

Correct AnswerverifiedShow Answer

In most states a person is given full legal capacity to enter into contracts when he or she becomes _____________ before reaching the age of majority.

Correct AnswerverifiedShow Answer

As a general rule, parents are not liable for contracts entered into by their minor children.

Correct AnswerverifiedTrue

Which of the following involves overly harsh or lopsided substance in an agreement?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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The covenant is likely to be enforced. A...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Today in all but _ states, a minor is someone under the age of _.

Correct Answer
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Correct Answer
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False

Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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True

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Correct Answer
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