Business Law

Question 1

A contract may be illegal if it involves an agreement to do something that violates….

Answer 1

Statutory law

Question 2

Individuals who agree to commit crimes for a promised consideration are involved in what criminal law calls….

Answer 2

conspiracy

Question 3

If it’s impossible to separate a contract into insolated promises and acts, each of which can be performed independently of the others, then the entire contract is

Answer 3

ILLEGAL

Question 4

If certain promises and actions in a contract can be successfully performed by themselves, then the contract is said to be

Answer 4

divisible
The courts may enforce those parts of the agreement that are legal and revoke the parts that are not

Question 5

in pari delicto

Answer 5

(in equal fault) if they both know that the agreement is illegal
- the court will aid neither party

-If one party is aware of the wrongdoing then the innocent party will be granted relief

Question 6

State legislatures pass laws declaring that certain types of agreements are illegal and void because they violate

Answer 6

Civil and Criminal Statutes
Usury Statutes
Gambling Statutes
Licensing Statutes

Question 7

Agreements that violate Civil and Criminal Statutes

Answer 7

Agreements that require one party to commit a tort or a crime are illegal

Agreements to protect one party from the consequences of torts or crimes committed are illegal

Question 8

Agreements that violate Statutes: Usury

Answer 8

Each state sets a maximum interest rate that lenders can charge for loans by statute

Interest is the fee the borrower pays to the lender for using the money

Charging more than the maximum legal interest rate is usury

Question 9

Agreements that violate Statutes: Gambling

Answer 9

State statutes also prohibit gambling agreements—agreements in which one party wins and another party loses, even if some skill may be involved

Question 10

Gambling agreements include

Answer 10

Playing cards for money
Money wagers or bets on elections or sports events
Buying tickets in a sports pool

Question 11

In the past, most states prohibited gambling, however, many states changed their laws to allow some regulated gambling, such as

Answer 11

Betting at racetracks
Certain forms of off-track betting
State-run lotteries

Question 12

Agreements that violate Statutes: licensing

Answer 12

-All states have statutes that require people to have a license to practice certain trades or professions
- engaging in such a trade or profession without a license is illegal

Question 13

Some state statutes require licenses simply to raise revenue… examples include…….

Answer 13

Examples: Vendors, fishing, hunting

Agreements made with these types of unlicensed persons would be valid
The unlicensed person is subject to penalties

Question 14

Public Policy

Answer 14

a legal doctrine, that consists of a collection of mandates, regulations or laws established through certain political processes

Question 15

The basis for making public policy decisions is the…

Answer 15

underlying principle that nobody should get away with doing something that harms the public at large

The law protects our rights to make a living and do business in a market economy

Question 16

restraint of trade

Answer 16

a limitation on the full exercise of doing business with others

Question 17

Three types of contracts that violate our right to Public Policy

Answer 17

Outright Contracts Not to Compete
Price Fixing
Agreements to Defeat Competitive Bidding

Question 18

Price Fixing

Answer 18

Price fixing occurs when competitors agree on certain price ranges within which they set their prices

Price fixing discourages competition and raises prices

Question 19

Covenants Not to compete in employment Contracts (under contracts not to compete)

Answer 19

People in middle / upper-level management positions sometimes agree not to work for competitors / start competing businesses for a specified period of time after they leave their job

Such contracts are enforced only as necessary to protect the former employer from unfair competition

The courts will uphold such a restriction if it is reasonable in time and geographic location

Question 20

Outright Contracts Not to Compete

Answer 20

-Business owner sells a business -> restrictive covenant sometimes

-This enables seller to sell, and the purchaser to buy the goodwill (the market value of the good reputation) of an ongoing business

This means that the seller of the business will not open a competing business within a certain area for a period of time after the sale

The court will uphold such a restriction if it is reasonable in time and geographic location

Question 21

Agreements to Defeat Competitive Bidding

Answer 21

Laws often require governments to construct public works or buy goods and services through competitive bidding

-Rivals submit bids for a project, lowest bid wins

-If these companies meet before hand and agree to bid low, this is illegal

Question 22

Agreements to OBSTRUCT Justice

Answer 22

Any contract that interferes with the administration of justice is illegal
Such agreements include:

Protecting someone from arrest
Encouraging lawsuits
Giving false testimony
Bribing a juror
Paying a non-expert to testify at a trial
Agreement not to prosecute a person who has committed a crime in return for money

Question 23

Agreements Inducing Breach of Duty or Fraud

Answer 23

Congressional/ State representatives / public officials hold positions of trust

These officials owe a duty to work for the best interest of the public

Any contract that tries to influence the representatives to use their positions for private gain is unenforceable

Question 24

Agreements Interfering with Marriage

Answer 24

-The law encourages marriages and protects family relationships

-Contracts that discourage, harm, or interfere with good family relationships are illegal and unenforceable in court

Question 25

If the bidders get together and agree not to bid lower than a certain price, then they are

Answer 25

-not bidding fairly

-These agreements and contracts are not enforceable

Question 26

Why did some states change their laws to allow regulated gambling?

Answer 26

-Additional source of income for the government

Question 27

hi marissa how is the studying going

Answer 27

Personally its going bad thx for asking bye! bye!

Question 28

A bid

Answer 28

An offer to buy /sell goods /services at a stated price

Question 29

-If an activity harms the health, safety, welfare, or morals of the public, that activity violates ……..

Answer 29

public policy

Question 30

restrictive covenant

Answer 30

-When a business owner sells a business, sometimes the sales contract will include a provision called a restrictive covenant, which is a promise not to compete