Question 1

Companywide standardized form contracts imposed on a "take-it-or-leave it" basis by a party with superior bargaining strength are called contracts of collusion.

Accepted Answer

A) True 
 B)False

Question 2

In an employment contract, agreements not to compete are:

Accepted Answer

A)  illegal. 
B)  uniformly held to be in the public interest and therefore legal. 
C)  never questioned by the court. 
D)  valid, if the restriction is reasonable and necessary for the protection of the benefited party. 
A)  illegal. 
B)  uniformly held to be in the public interest and therefore legal. 
C)  never questioned by the court. 
D)  valid, if the restriction is reasonable and necessary for the protection of the benefited party.

Question 3

An agreement to restrain trade may be void on the grounds that it is:

Accepted Answer

A)  fraudulent. 
B)  contrary to public policy. 
C)  illegal lobbying. 
D)  unfair to merchants. 
A)  fraudulent. 
B)  contrary to public policy. 
C)  illegal lobbying. 
D)  unfair to merchants.

Question 4

To stabilize the industry, manufacturers of the same or similar products may agree that each will market its product in a specified geographic area of the country and will not market its product in the territory assigned to other manufacturers.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not an example of an agreement injuring public service?

Accepted Answer

A)  agreements to sell public offices 
B)  agreements to obtain pardons through offers of money 
C)  agreements to submit a bid on a construction project 
D)  agreements by public officers to accept less in pay than stipulated by law 
A)  agreements to sell public offices 
B)  agreements to obtain pardons through offers of money 
C)  agreements to submit a bid on a construction project 
D)  agreements by public officers to accept less in pay than stipulated by law

Question 6

When a nationally-known neurosurgeon in Chicago, Illinois sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following types of contracts might be unenforceable as contrary to public policy?

Accepted Answer

A)  a contract that is contrary to the protection of the public welfare, health, or safety 
B)  a contract that is contrary to the protection of the person 
C)  a contract that is contrary to the protection of recognized social institutions 
D)  all of the above 
A)  a contract that is contrary to the protection of the public welfare, health, or safety 
B)  a contract that is contrary to the protection of the person 
C)  a contract that is contrary to the protection of recognized social institutions 
D)  all of the above

Question 8

In the case of an illegal contract, both parties usually are prohibited from seeking relief in the courts:

Accepted Answer

A)  if the illegal contract has not been performed. 
B)  if the contract has been partially performed. 
C)  if the contract has been fully performed. 
D)  all of the above. 
A)  if the illegal contract has not been performed. 
B)  if the contract has been partially performed. 
C)  if the contract has been fully performed. 
D)  all of the above.

Exam 16: Legality and Public Policy

Companywide standardized form contracts imposed on a "take-it-or-leave it" basis by a party with superior bargaining strength are called contracts of collusion.

In an employment contract, agreements not to compete are:

An agreement to restrain trade may be void on the grounds that it is:

To stabilize the industry, manufacturers of the same or similar products may agree that each will market its product in a specified geographic area of the country and will not market its product in the territory assigned to other manufacturers.

Which of the following is not an example of an agreement injuring public service?

When a nationally-known neurosurgeon in Chicago, Illinois sells her practice, the contract may specify that the seller will not practice within a 100-mile radius of Chicago for one year.

Which of the following types of contracts might be unenforceable as contrary to public policy?

In the case of an illegal contract, both parties usually are prohibited from seeking relief in the courts:

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

The Legal Environment of International Trade

Crimes

Torts

Intellectual Property Rights

Cyberlaw

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Breach of Contract and Remedies

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Instruments, Parties, and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor-Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

Filters