Deck 12: Legal Purpose of Contracts

Question 1

Examples of agreements that violate government statutes,and are enforceable by the courts,are gambling and wagering agreements.

Answer 1

False

Question 2

If the parties to a contract are legally competent and have reached mutual agreement,the law does not require that the purpose of the agreement be legal.

Answer 2

False

Question 3

A community may designate certain areas as zones for such uses as light industrial,industrial,commercial,and residential.

Answer 3

True

Question 4

Gambling on Native American reservations is universally legal in all the states.

Question 5

In many states,the usury statutes apply to retail installment credit sales and credit card transactions.

Question 6

Some agreements are unenforceable because they are contrary to the interests of the public,such as agreements in restraint of marriage.

Question 7

All agreements are typically legal and enforceable as long as they fulfill the terms of a contract,even if it is to wrongfully use one's influence.

Question 8

Some state statutes and local ordinances that regulate the creation and performance of certain types of contracts on Sundays and legal holidays are referred to as:

A) white laws.
B) black laws.
C) blue laws.
D) red laws.

Question 9

The Robinson-Patman Act of 1936 specifically prohibits sellers from discriminating among different purchasers of goods of like grade and quality under certain conditions.

Question 10

In 1890,Congress passed the Federal Antitrust Act,also called the Robinson-Patman Act.

Question 11

Usury laws are applicable to transactions between corporations in all the states.

Question 12

In the case of a divisible agreement that has one part with a legal purpose,the part with a legal purpose is generally:

A) enforceable.
B) void.
C) unenforceable.
D) disaffirmed.

Question 13

The Federal Antitrust Act,also known as the Sherman Antitrust Act,forbids agreements that result in certain kinds of product price discrimination.

Question 14

Contracts made on a legal holiday can generally be performed on the:

A) same day of the legal holiday.
B) next business day following the holiday.
C) on the day prior to the holiday.
D) within one week from the date of legal holiday.

Question 15

Persons attempting to influence the public officials are exposed and prosecuted every year,but not the public officials.

Question 16

Contracts involving the payment of a note,the delivery of merchandise,and the repair of equipment are examples of:

A) gambling and wagering agreements.
B) usurious agreements.
C) unlicensed transactions.
D) agreements made on Sundays or legal holidays.

Question 17

Zoning regulations may act as legal restraints of trade because they restrict where and how businesses may operate.

Question 18

Monopoly power is the term used to describe a situation in which one or more people or firms control the market in a particular area or for a certain product.

Question 19

Broad classifications of illegal agreements include agreements:

A) contrary to the biblical law and other religions.
B) that have been declared illegal by a public ballot.
C) made against the security and welfare of the public.
D) that are made orally between two people.

Question 20

A private franchise is another form of legal monopoly which is sometimes called natural monopolies.

Question 21

If a federal or state government grants a firm or person a license to conduct a specific business,then such a firm or person may be known as a:

A) private franchisee.
B) government-granted franchise.
C) reentry permit.
D) work permit.

Question 22

In 1890,Congress passed the Federal Antitrust Act,also known as the:

A) Corporate Oxendale Act.
B) Swiss Antitrust Law.
C) Sherman Antitrust Act.
D) Sarbanes Oxley Act.

Question 23

If the purpose of the licensing requirement is solely to raise revenue for the jurisdiction,and not to ensure competency,the absence of a license:

A) does not make the agreement void.
B) makes the agreement void.
C) creates an illegal and unenforceable contract.
D) creates a legal but void agreement.

Question 24

If the purpose of the statute is regulatory and enforcement of the licensing requirements is clearly in the public interest,then the unlicensed transaction becomes:

A) valid.
B) illegal.
C) voidable.
D) ratified.

Question 25

An agreement to loan money at a higher-than-legal rate of interest is:

A) usurious.
B) unconscionable.
C) adhesive.
D) speculative.

Question 26

Agreements to defraud creditors and other persons are void and unenforceable because they lack the element of:

A) optimum communication.
B) competency of parties.
C) offer and acceptance.
D) legality of purpose.

Question 27

If the purpose of the licensing requirement is solely to raise revenue for the jurisdiction,and not to ensure competency,the absence of a license does not make the agreement:

A) voidable.
B) void.
C) ratified.
D) disaffirmed.

Question 28

Agreements in restraint of marriage are:

A) valid.
B) void.
C) voidable .
D) enforceable.

Question 29

The ______________ forbids certain agreements that tend to unreasonably inhibit competition,fix prices,allocate territories,or limit production.

A) Clean Water Act
B) Sherman Antitrust Act
C) Educate America Act
D) Americans with Disabilities Act

Question 30

In certain states,typical office basketball and football pools are examples of:

A) legal restraints of trade.
B) usurious agreements.
C) common office sports.
D) illegal gambling.

Question 31

An agreement made with an intention to defraud creditors or other persons is referred to as a(n):

A) usurious agreement.
B) wagering agreement.
C) dealership agreement.
D) agreement against public policy.

Question 32

Two pharmacies agreed to serve a particular section of the town by offering medicines at lower prices in order to create monopoly and discourage competition among other stores.This would be a(n):

A) agreement in restraint of trade.
B) non-solicitation agreement.
C) usurious agreement.
D) agreement to defraud creditors.

Question 33

In 1890,Congress passed the Federal Antitrust Act.Similar antitrust statutes have been passed by most states to prohibit:

A) local anticompetitive practices.
B) racial discrimination.
C) payment of taxes.
D) religious discrimination.

Question 34

A gambling agreement is one in which performance by one party depends on the occurrence of a(n):

A) uncertain event.
B) unrequited event.
C) terminated agreement.
D) confirm event.

Question 35

To protect the public,most states require persons engaged in certain businesses,professions,and occupations to be:

A) contractual.
B) monopolized.
C) licensed.
D) unlicensed.

Question 36

An agreement to encourage a lawsuit in which one or more parties have no legitimate interest is:

A) a subversion.
B) champerty.
C) unlicensed.
D) a transaction.

Question 37

Like zoning regulations,safety and environmental regulations also serve as:

A) legal restraints of trade.
B) foreign protection laws.
C) unfair trade practices.
D) policies encouraging monopolization.

Question 38

An agreement to refrain from testifying as a witness in a legal action falls under agreements that:

A) obstruct or pervert justice.
B) interfere with public service.
C) are in restraint of marriage.
D) are in restraint of trade.

Question 39

An agreement in which performance by one party depends upon the occurrence of an uncertain event in the hope of gaining something of value is termed:

A) a speculative agreement.
B) a gambling agreement.
C) an uncertain agreement.
D) an agreement of chance.

Question 40

A ???__________________ is a special kind of business organization involving a contractual relationship between the parent firm and the independent company.

A) government-granted monopoly
B) retailer
C) private franchise
D) wholesaler

Question 41

Give two examples of illegal agreements.

Question 42

Describe "usurious agreements."

Question 43

What constitutes an "illegal restraint of trade?" Explain and provide an example.

Question 44

Federal and state legislatures have enacted statutes to protect the ____________of the general population from the effects of pollution of the atmosphere and bodies of water.

A) health and welfare
B) movable property
C) immovable property
D) educational status

Question 45

What effects do zoning regulations and environmental and safety regulations have on the corporate sector?

Question 46

What is the legal position of a franchisee in a private franchise agreement?