Ch. 13

Question 1

License

Answer 1

Every jurisdiction has laws requiring this for those who engage in certain trades, professions, and businesses

Question 2

Revenue License

Answer 2

Does not seek to protect against incompetent or unqualified practitioners but serves simply to raise money

Question 3

Regulatory License

Answer 3

A measure designed to protect the public from unqualified practitioners

Question 4

Wager

Answer 4

The parties stipulate that one shall win and the other lose depending on the outcome of an event in which their only “interest” is the possibility of such gain or loss.

Question 5

Usury Statute

Answer 5

A law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract

Question 6

For a transaction to be usurious, courts usually require evidence of the following 4 factors:

Answer 6

1. ) A loan
2. ) of money
3. ) that is repayable absolutely and in all events
4. ) for which an interest charge is exacted in excess of the interest charge is exacted in excess of the interest rate allowed by law.

Question 7

Restraint of Trade

Answer 7

Any contract or agreement that eliminates competition or otherwise obstructs trade or commerce

Question 8

Covenant Not to Compete

Answer 8

An agreement to refrain from entering into a competing trade, profession, or business

Question 9

Exculpatory Clause

Answer 9

Excuses one party from liability for her own tortious conduct

Question 10

Unconscionable Contract

Answer 10

Unfair or unduly harsh;

Contract which no sensible person would make, and no honest and fair person would accept

Question 11

Procedural Unconscionability

Answer 11

Involves scrutiny for the presence of “bargaining naughtiness”

Question 12

Substantive Unconscionability

Answer 12

The courts examine the actual terms of a contract for oppressive or grossly unfair provisions