Exam 11: Capacity and Legality

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 several 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 liability before she did anything with Treena's hair.Treena,however,sued anyway.Which of the following is true regarding Janice's claim that no judge in the country would enforce such an agreement?

Which of the following is true regarding an agreement to commit a crime or a tort?

Which of the following is true if a contract is disaffirmed on the basis of intoxication?

Define the offense of usury,and discuss the two situations discussed in the textbook where loans may exceed the maximum interest rate despite the existence of usury statutes.

If a licensing statute is intended to protect the public's health,safety,and welfare,an agreement with an unlicensed professional is typically deemed ________.

What is the purpose of the minor's right to disaffirm contracts?

Because their contracts are ________,minors have the right,until a reasonable time after reaching the age of majority,to ________,or avoid,their contracts.

Cheap Motorcycle.Tony,a hateful,disgruntled business law professor,notices that Peter,a student 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?

No formalities are required to disaffirm a contract; the minor need only manifest an intention to rescind the contract,either by words or by actions.

Guardians may be appointed for which of the following individuals?

Bob is hired to do computer sales for an electronics store.He agrees that if he leaves his employment,he will not work for another computer store within twenty-five miles for a period of two years.This type of agreement is called a(n)________.

When contracts are against generally accepted public policy,these agreements are deemed ________.

A person may have either no capacity,and therefore any attempted contract is ________,or limited capacity,resulting in ________ contracts.

Even today,a few states limit the ability of married women to enter into certain kinds of contracts.

Today,in all but three states,a minor is defined as a person under the age of 21.

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 several 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 liability before she did anything with Treena's hair.Treena,however,sued anyway.The agreement Rick and Janice entered into is referred to as which of the following?

As a general rule,most states follow the Restatement of Contracts,which provides that contracts of an intoxicated person are void.

If a legal contract is formed and the subject of the contract then becomes illegal under a new statute,the contract is ________.

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

Historically,which of the following people were considered as having limited or no capacity to contract?