Chapter 10: Legal Purpose and Proper Form

What are the three elements of a lottery?

• Prize, chance, consideration

• Prize, skill, consideration

• Prize, luck, consideration

• Prize, opportunity, consideration

What is usury?

• Lending money at a rate higher than the state's maximum allowable rate

• Lending money at a fixed rate set by the state

• Lending money at a rate lower than the state's maximum allowable rate

• Lending money without any interest

Which agreements violate antidiscrimination statutes?

• Agreements involving illegal discrimination

• Agreements involving legal discrimination

• Agreements involving fair discrimination

• Agreements involving equal discrimination

What is an example of obstructing legal procedures?

• Paying non-expert witnesses in a trial to testify

• Paying expert witnesses in a trial to testify

• Bribing judges

• Bribing lawyers

What is a competency license?

• A state requirement for people to have a certain level of experience

• A state requirement for people in certain occupations and businesses to pass exams

• A state requirement for people to have a certain level of education

• A state requirement for people to have a certain level of competency

What is price fixing?

• When competing firms agree to have different prices for different products or services

• When competing firms agree to raise their prices

• When competing firms agree to lower their prices

• When competing firms agree on the same price to be charged for all products or services

What is resale price maintenance?

• When a manufacturer may not agree or contract with retailers to sell the product at a particular price

• When a manufacturer can set the resale price for retailers

• When retailers can set the resale price for manufacturers

• When retailers can sell the product at any price they want

When is an agreement not to compete illegal?

• When it is unreasonable in time period, geographic area, or protection of employer's interest

• When it is reasonable in time period, geographic area, and protection of employer's interest

• When it is reasonable in time period, but unreasonable in geographic area

• When it is reasonable in geographic area, but unreasonable in time period

Under what circumstances will the courts enforce illegal agreements?

• When the party is protected by Blue Sky Laws

• When the party is excusably ignorant

• When the party rescinds before the illegal act occurs

• All of the above

What is the purpose of the Statute of Frauds?

• To require important types of contracts to be in writing to be enforceable in court

• To prevent fraud in contracts

• To ensure all contracts are fair

• To protect consumers from unfair contracts