Ch. 10 questions

Question 1

Non-compete agreement has 2 limits, name them

Answer 1

1. not being able to compete that involve the sale of an ongoing business
2. not being able to compete that involve employment contracts

Question 2

Give one example of a profession that needs a license.

Answer 2

Doctors, Lawyers, and electricians

Question 3

Give one type of contract a minor cannot dis-affirm from

Answer 3

Life insurance, child support, bank accounts

Question 4

Give one example of a necessary item for a minor.

Answer 4

food, clothing, shelter

Question 5

State one purpose of a Licensing statute

Answer 5

Give the government an avenue by which to regulate the specific industries

Question 6

Give one example of legalized gambling

Answer 6

Betting on draw poker

Question 7

Give one exception for a usury statute

Answer 7

If a business needs money expand and is willing to pay the higher interest rate, the corp. should be afforded the opportunity to borrow

Question 8

Give one example of a procedural unconscionability.

Answer 8

Tiny hard to read print, inability of a person to fully read over a contract

Question 9

Give one example of a business that CAN use an exculpatory clause

Answer 9

A private business or an individual and must not be important to the public interest

Question 10

What do minors do after they dissaffirm a contract?

Answer 10

It requires the minor to to notify the competent party of the intent to disaffirm and return to the competent party any consideration received under the contract

Question 11

What is the other name for “Sabbath Laws”?

Answer 11

Blue Law

Question 12

When are contracts “Void”?

Answer 12

If a person’s mental deficiency has resulted in his being insane and a guardian had been appointed to him, he has no capacity to enter into contracts

Question 13

Name 3 ways in which you can no longer be considered a minor

Answer 13

Emancipation, marriage, or if you join the military