Question 1

A bargain is unconscionable if it is grossly unfair.​

Accepted Answer

A) True 
 B)False

Question 2

Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely​

Accepted Answer

A)   ​award Betty damages equal to the speculative profit of a closer store.
B)   ​order Diane to stop doing business.
C)   ​reform the covenant.
D)   ​prohibit both parties from opening clothing stores.E) A) and C)
F) C) and D)

Question 3

Ordinarily, minors can disaffirm contracts even when they have misrepresented their age.​

Accepted Answer

A) True 
 B)False

Question 4

Jenny promises to pay Kay $500 because "she does not have as much money as other people." Jenny's promise is​

Accepted Answer

A)   ​enforceable because society wants people to keep their promises.
B)   ​enforceable because the redistribution of wealth is a valid social goal.
C)   ​not enforceable because Jenny could have paid Kyle more.
D)   ​not enforceable because Kay has not given consideration in return.E) C) and D)
F) A) and B)

Question 5

Even in states that permit certain types of gambling, courts find that gambling contracts are illegal.​

Accepted Answer

A) True 
 B)False

Question 6

Contracts in restraint of trade are contrary to the public policy that favors competition in the economy.​

Accepted Answer

A) True 
 B)False

Question 7

To be legally sufficient, consideration must be evidenced by something tangible.​

Accepted Answer

A) True 
 B)False

Question 8

A person who is intoxicated can avoid liability on any contract due to the intoxication.​

Accepted Answer

A) True 
 B)False

Question 9

A covenant not to compete included in the sale of an ongoing business is always unenforceable.​

Accepted Answer

A) True 
 B)False

Question 10

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be​

Accepted Answer

A)   ​objectively worthy.
B)   ​precisely adequate.
C)   ​legally sufficient.
D)   ​practically sound.E) A) and B)
F) A) and C)

Question 11

Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal.​

Accepted Answer

A) True 
 B)False

Question 12

Laurel enters into a contract to sell her bike to Melanie. Melanie takes possession of the bike as a minor and continues to use it well after reaching the age of majority. She has​

Accepted Answer

A)   ​expressly ratified the contract.
B)   ​impliedly ratified the contract.
C)   ​expressly disaffirmed the contract.
D)   ​impliedly disaffirmed the contract.E) A) and B)
F) A) and C)

Exam 9: Consideration, Capacity, and Legality

Even in states that permit certain types of gambling, courts find that gambling contracts are illegal.

Correct Answer
verified

A bargain is unconscionable if it is grossly unfair.

Correct Answer
verified

Laurel enters into a contract to sell her bike to Melanie. Melanie takes possession of the bike as a minor and continues to use it well after reaching the age of majority. She has

Correct Answer
verified

Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely

Correct Answer
verified

Contracts in restraint of trade are contrary to the public policy that favors competition in the economy.

Correct Answer
verified

A person who is intoxicated can avoid liability on any contract due to the intoxication.

Correct Answer
verified

To be legally sufficient, consideration must be evidenced by something tangible.

Correct Answer
verified

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Correct Answer
verified

Ordinarily, minors can disaffirm contracts even when they have misrepresented their age.

Correct Answer
verified

Jenny promises to pay Kay $500 because "she does not have as much money as other people." Jenny's promise is

Correct Answer
verified

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Correct Answer
verified

Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal.

Correct Answer
verified

Exam 9: Consideration, Capacity, and Legality

Even in states that permit certain types of gambling, courts find that gambling contracts are illegal.​

Correct AnswerverifiedShow Answer

A bargain is unconscionable if it is grossly unfair.​

Correct AnswerverifiedShow Answer

Laurel enters into a contract to sell her bike to Melanie. Melanie takes possession of the bike as a minor and continues to use it well after reaching the age of majority. She has​

Correct AnswerverifiedShow Answer

Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely​

Correct AnswerverifiedShow Answer

Contracts in restraint of trade are contrary to the public policy that favors competition in the economy.​

Correct AnswerverifiedShow Answer

A person who is intoxicated can avoid liability on any contract due to the intoxication.​

Correct AnswerverifiedShow Answer

To be legally sufficient, consideration must be evidenced by something tangible.​

Correct AnswerverifiedShow Answer

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be​

Correct AnswerverifiedShow Answer

Ordinarily, minors can disaffirm contracts even when they have misrepresented their age.​

Correct AnswerverifiedShow Answer

Jenny promises to pay Kay $500 because "she does not have as much money as other people." Jenny's promise is​

Correct AnswerverifiedShow Answer

A covenant not to compete included in the sale of an ongoing business is always unenforceable.​

Correct AnswerverifiedShow Answer

Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal.​

Correct AnswerverifiedShow Answer

Even in states that permit certain types of gambling, courts find that gambling contracts are illegal.

Correct Answer
verified

A bargain is unconscionable if it is grossly unfair.

Correct Answer
verified

Laurel enters into a contract to sell her bike to Melanie. Melanie takes possession of the bike as a minor and continues to use it well after reaching the age of majority. She has

Correct Answer
verified

Betty sells her Clothes Shop to Diane. In the sale agreement, there is a covenant not to compete that prohibits Betty from opening another clothing store within a certain distance. If a court concludes that this restriction is unreasonable, it will most likely

Correct Answer
verified

Contracts in restraint of trade are contrary to the public policy that favors competition in the economy.

Correct Answer
verified

A person who is intoxicated can avoid liability on any contract due to the intoxication.

Correct Answer
verified

To be legally sufficient, consideration must be evidenced by something tangible.

Correct Answer
verified

Rory questions whether there is consideration for his contract with Silver Spurs Club to exchange his performance of country music on certain dates for Silver's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

Correct Answer
verified

Ordinarily, minors can disaffirm contracts even when they have misrepresented their age.

Correct Answer
verified

Jenny promises to pay Kay $500 because "she does not have as much money as other people." Jenny's promise is

Correct Answer
verified

A covenant not to compete included in the sale of an ongoing business is always unenforceable.

Correct Answer
verified

Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal.

Correct Answer
verified