Chapter 10 Business Law - Illegal Agreements, Fraud

Question 1

A oral agreement to sell a house is bound by the down payment of the buyer.

Accepted Answer

B. False

Question 2

A contract made illegal by specific statute might involve....

Accepted Answer

C. both A and B

Question 3

Courts may enforce all or part of an illegal agreement and may grant relief to 1 of the parties

Accepted Answer

D. all of these

Question 4

An executory contract in violation of the Statute of Frauds is an illegal contract.

Accepted Answer

B. False

Question 5

Some of the legalized forms of gambling might include.....

Accepted Answer

B. state lotteries

Question 6

As an incentive to stop illegal acts, restitution is available...

Accepted Answer

A. to a party if they rescind before the illegal act occurs

Question 7

Some agreements that delay or prevent justice might include....

Accepted Answer

C. both A and B

Question 8

Quasi-contract is when an element has unjustly enriched 1 party in excess four times its worth.

Accepted Answer

A. True

Question 9

Professionals such as physicians, teachers, lawyers, and pharmacists must have a ......

Accepted Answer

B. a competency license

Question 10

The practice of competitors dividing markets between themselves is known as ......

Accepted Answer

D. allocation of markets

Question 11

Compounding a crime means committing 2 + crimes against the victim, ie. robbery and assault

Accepted Answer

B. False

Question 12

All states setting the same set rate of interest would be considered usurious and illegal.

Accepted Answer

B. False

Question 13

A contract is said to be within the Statute of Frauds if it is required to be in writing.

Accepted Answer

A. True

Question 14

Which of the following would not be an agreement that would restrain trade unreasonably?

Accepted Answer

D. franchising

Question 15

Once a court has found that a contract or a term of a contract is unconscionable, it can ....

Accepted Answer

D. all of these

Question 16

Small loan rates of interest typically exceed the usurious rates, yet they are legal.

Accepted Answer

A. True

Question 17

Illegal lotteries involve....

Accepted Answer

A. paying to play, luck, and a prize

Question 18

Agreements to commit felonies are not illegal.

Accepted Answer

B. False

Question 19

Valid contracts may be oral, written, implied from conduct, or some combination of these.

Accepted Answer

A. True

Question 20

In most states, lenders of money may not charge more than a specified maximum rate of interest.

Accepted Answer

A. True

Questions 20