Question 1

Which of the following is an example of a contract contrary to public policy?

Accepted Answer

A)  A purchases a motorcycle from B at a price much lower than its real value. 
B)  A agrees to sell 1000 tonnes of rice to the local government. 
C)  A agrees to appoint B as sheriff, provided he helps him win the local elections. 
D)  A agrees to give $100 to B if he wins the lottery. 
A)  A purchases a motorcycle from B at a price much lower than its real value. 
B)  A agrees to sell 1000 tonnes of rice to the local government. 
C)  A agrees to appoint B as sheriff, provided he helps him win the local elections. 
D)  A agrees to give $100 to B if he wins the lottery. C

Question 2

The legal rate of interest is a rate:

Accepted Answer

A)  that is higher than the contract rate. 
B)  at which no interest is charged. 
C)  that is over and above the rate that is lawfully allowed. 
D)  that is applied when no rate is specified. 
A)  that is higher than the contract rate. 
B)  at which no interest is charged. 
C)  that is over and above the rate that is lawfully allowed. 
D)  that is applied when no rate is specified. D

Question 3

Contracts obstructing the administration of justice are unenforceable.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is true of contracts that limit the freedom of marriage?

Accepted Answer

A)  An agreement where one party promises never to marry is held valid. 
B)  An agreement not to marry during minority is valid. 
C)  A marriage brokerage contract is enforceable by law. 
D)  An agreement to refrain from marrying for a definite time period is invariably valid. 
A)  An agreement where one party promises never to marry is held valid. 
B)  An agreement not to marry during minority is valid. 
C)  A marriage brokerage contract is enforceable by law. 
D)  An agreement to refrain from marrying for a definite time period is invariably valid.

Question 5

The courts may sometimes allow a wrongdoer to enforce a contract against an innocent party.

Accepted Answer

A) True 
 B)False

Question 6

A dentist who performs services without a license is entitled to sue to collect for the services.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of usury laws?

Accepted Answer

A)  They limit the rate of interest that may be charged for the use of money. 
B)  They prohibit certain businesses and professions from operating without a license. 
C)  They charge violators a penalty that is universal across all states. 
D)  They restrict the sale of prohibited articles within a state. 
A)  They limit the rate of interest that may be charged for the use of money. 
B)  They prohibit certain businesses and professions from operating without a license. 
C)  They charge violators a penalty that is universal across all states. 
D)  They restrict the sale of prohibited articles within a state.

Question 8

Under the _____, it is unlawful to discriminate in price between competing buyers if the goods are of like grade, quantity, and quality.

Accepted Answer

A)  Revenue Act of 1936 
B)  Walsh-Healey Act 
C)  Robinson-Patman Act 
D)  Hatch Act of 1939 
A)  Revenue Act of 1936 
B)  Walsh-Healey Act 
C)  Robinson-Patman Act 
D)  Hatch Act of 1939

Question 9

In which of the following situations is a state most likely to enforce a usury law?

Accepted Answer

A)  X purchases two crates of liquor from a minor. 
B)  X sells a plot of land at a rate higher than the maximum contract rate. 
C)  X sends two boxes of unapproved medicines to children in Africa. 
D)  X charges a very high rate of interest on money borrowed by Y. 
A)  X purchases two crates of liquor from a minor. 
B)  X sells a plot of land at a rate higher than the maximum contract rate. 
C)  X sends two boxes of unapproved medicines to children in Africa. 
D)  X charges a very high rate of interest on money borrowed by Y.

Question 10

Which of the following is true of gambling contracts?

Accepted Answer

A)  They allow the court to authorize one party to recover damages from another for breach of a gambling debt. 
B)  They are contracts in which both parties in the contract either win or lose. 
C)  They allow the state to permit the stakeholder, who is a trustee of funds, to keep the money. 
D)  They are transactions wherein the parties stand to win or to lose based on pure chance. 
A)  They allow the court to authorize one party to recover damages from another for breach of a gambling debt. 
B)  They are contracts in which both parties in the contract either win or lose. 
C)  They allow the state to permit the stakeholder, who is a trustee of funds, to keep the money. 
D)  They are transactions wherein the parties stand to win or to lose based on pure chance.

Question 11

A Sunday contract is declared legal by statute.

Accepted Answer

A) True 
 B)False

Question 12

What are some of the contracts that are contrary to public policy? Describe any two contracts.

Accepted Answer

Some of the contracts that are contrary

Question 13

A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract.

Accepted Answer

A) True 
 B)False

Question 14

All contracts must be for a lawful purpose otherwise they would be considered void.

Accepted Answer

A) True 
 B)False

Question 15

An agreement not to marry during minority is invalid.

Accepted Answer

A) True 
 B)False

Question 16

A contract is indivisible if it can be performed in ways other than as an entity.

Accepted Answer

A) True 
 B)False

Question 17

If a druggist sells morphine to one who does not have a prescription, a suit to collect the price would  be successful.

Accepted Answer

A) True 
 B)False

Question 18

The legal contract rate is the highest rate that may be charged according to usury laws.

Accepted Answer

A) True 
 B)False

Question 19

Contracts which are designed to limit competition are acceptable by law.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true of Sunday contracts?

Accepted Answer

A)  They are universal across states. 
B)  Judicial interpretation has had no impact on their formulation. 
C)  Their laws are a result of statutes. 
D)  They make it mandatory to prosecute all violators of such contracts. 
A)  They are universal across states. 
B)  Judicial interpretation has had no impact on their formulation. 
C)  Their laws are a result of statutes. 
D)  They make it mandatory to prosecute all violators of such contracts.

Exam 10: Illegal Agreements

Which of the following is an example of a contract contrary to public policy?

The legal rate of interest is a rate:

Contracts obstructing the administration of justice are unenforceable.

Which of the following is true of contracts that limit the freedom of marriage?

The courts may sometimes allow a wrongdoer to enforce a contract against an innocent party.

A dentist who performs services without a license is entitled to sue to collect for the services.

Which of the following is true of usury laws?

Under the _____, it is unlawful to discriminate in price between competing buyers if the goods are of like grade, quantity, and quality.

In which of the following situations is a state most likely to enforce a usury law?

Which of the following is true of gambling contracts?

A Sunday contract is declared legal by statute.

What are some of the contracts that are contrary to public policy? Describe any two contracts.

A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract.

All contracts must be for a lawful purpose otherwise they would be considered void.

An agreement not to marry during minority is invalid.

A contract is indivisible if it can be performed in ways other than as an entity.

If a druggist sells morphine to one who does not have a prescription, a suit to collect the price would be successful.

The legal contract rate is the highest rate that may be charged according to usury laws.

Contracts which are designed to limit competition are acceptable by law.

Which of the following is true of Sunday contracts?

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Nature and Classes of Contracts

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

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