Legality

1. Where a court recognizes an agreement to be illegal, a lawsuit based on that agreement may be dismissed by the court even if neither plaintiff nor defendant raised the issue of illegality.

Answer True  False

1 points   

Question 2

1.  

When a law forbids the issuance of securities or notes by certain classes of corporations, a person who has purchased them may not recover the money paid.

Answer True  False

1 points   

Question 3

1.  

The social consequences of a contract are important in determining the contract's validity.

Answer True  False

1 points   

Question 4

1.  

Courts are quick to invalidate contracts on the ground that they are contrary to public policy because such contracts are so offensive to society.

Answer True  False

1 points   

Question 5

1.  

Legislation commonly requires that an installment-sale contract specify the cash price, down payment, finance charges, and insurance costs.

Answer True  False

1 points   

Question 6

1.  

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.

Answer True  False

1 points   

Question 7

1.  

Agreements not to compete always are void.

Answer True  False

1 points   

Question 8

1.  

An agreement not to compete that is unrelated to either the sale of a business or an employment contract is illegal.

Answer True  False

1 points   

Question 9

1.  

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.

Answer True  False

1 points   

Question 10

1.  

A charge added to the unpaid balance due on a revolving charge account generally is not subject to the law of usury.

Answer True  False

1 points   

Question 11

1.  

In the case...