Exam 11: Capacity and Legality

Darren is a certified interior designer with a lucrative client list in the city of Kelsa,situated in the state of Touslon.His business affords him a substantial amount of goodwill from his clients.Darren sells his accounting interior designing business to Glenda.When he sells his business to Glenda,Darren agrees not to open another interior designing firm in the city of Kelsa for a 25-year period.What kind of agreement exists between Darren and Glenda in this case?

Which of the following statements is true of exculpatory clauses?

What is a noncompete clause? When is it considered to be lawful?

A covenant not to compete is unenforceable,as written,if it is unreasonable.

According to the regulatory licensing statute,________.

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

Weakness of intellect constitutes legal insanity.

Define emancipation and list a few possible reasons for its occurrence.

Judges are free to define morality based on their individual views.

________ is the act of a minor after he or she has reached the age of majority,by which he or she accepts a contract entered into when he or she was a minor.

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geographical area for a specified time following the sale of the business or termination of employment.

________ is a rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

Which of the following groups is legally deprived from directly entering into contracts?

If a minor makes a contract with an adult,and the minor does not disaffirm the contract either during the period of minority or within a reasonable time after reaching the age of majority,________.

Bobby voluntarily enrolls in a skydiving course at OpenSkies,Inc.,an adventure firm.He signs a contract that relieves OpenSkies of liability.After receiving proper instruction,he jumps from an airplane.Unfortunately,Bobby is injured when he could not steer his parachute toward the target area while landing.He sues the parachute center for damages.But the court found that the contract protected OpenSkies from damages,as Bobby had voluntarily joined the course knowing all the risks involved.What kind of contractual provision protected OpenSkies from having to pay Bobby damages?

Under the ________ rule,a contract with an intoxicated person is voidable only if the person was so intoxicated when the contract was entered into that he or she was incapable of understanding or comprehending the nature of the transaction.

A(n)________ is a contractual provision that relieves one or both of the parties to a contract from tort liability.

A licensing statute is one that requires a person or business to obtain a license from the government ________.

What are the elements that must be shown to prove that a contract is unconscionable? What is the course of action taken by a court if a contract is found to be unconscionable?

The release of the liability clause is also known as the ________ clause.