3 - Ch 15

Question 1

in pari delicto

Answer 1

equally guilty; used in reference to a transaction as to which relief will not be granted to either party because both are equally guilty of wrongdoing

Question 2

good faith

Answer 2

the absence of knowledge of any defects in or problems

Question 3

contract of adhesion

Answer 3

a contract offered by a dominant party to a party with inferior bargaining power on a take-it-or-leave-it basis

Question 4

public policy

Answer 4

certain objectives relating to health, morals, and integrity of government that the law seeks to advance by declaring invalid any contract that conflicts with those objectives even though there is no statute expressly declaring such a contract illegal

Question 5

lottery

Answer 5

any plan by which a consideration is given for a chance to win a prize; it consists of three elements: 1. there must be a payment of money or something of value for an opportunity to win 2. a prize must be available
3. the prize must be offered by lot or chance

Question 6

usury

Answer 6

the lending of money at greater that the maximum rate of interest allowed by law