Part 3

Question 1

Licensing Statue

Answer 1

States require licenses for anyone who practices a profession (law or medicine)
Licensing is designed to protect the public, any contract made by unlicensed worker is unenforceable.

Question 2

usury

Answer 2

Prohibits charging excess interest on loans. Must be be within the permitted interest rate.

Question 3

Exculpatory clause

Answer 3

A contract provision that attempts to release one party from liability in the event the other is injured. (ski resort)

Question 4

Exculpatory clause unenforceable when

Answer 4

1) attempts to exclude intentional tort or gross negligence (pushing someone over cliff)
2) affected activity is in the public interest, such as medical care, public transportation, or some essential service
3) when both parties have gratefully unequal bargaining power ex: airline “take it or leave it” contract
4) when the clause is not clearly written and readily visable.

Question 5

Intentional tort

Answer 5

Doing something on purpose and or doing something negligent or unwanted that another party can sue you for.

Question 6

Unconscionable

Answer 6

A contract the court refuses to enforce because of fundamental unfairness

Question 7

Factors supporting unconscionable

Answer 7

Oppression – One party uses its superior power to force a contract on the weaker party. (contract of adhesion)
Surprise- The weaker party did not fully understand the consequences of its agreement.

Question 8

contract of adhesion

Answer 8

A standard contract prepared by one party and given to the other on a “take it or leave it” basis.