Question 1

Doug agrees with Elinor to sell methamphetamine to patrons of Elinor's nightclub Garden of Eden for 25 percent of the take.Doug sells the drugs but keeps all of the money.Elinor can

Accepted Answer

Courts will not enforce a contract for an illegal purpose, such as selling drugs. In this case, the agreement between Doug and Elinor was to sell methamphetamine, which is illegal. Therefore, Elinor cannot enforce the deal and is not entitled to any of the profits.

Question 2

Best Products,Inc.,hires Cole to develop and implement an e-commerce strategy for marketing Best's products. Cole signs a contract that in?cludes a clause prohibiting him from competing with Best during and af?ter the employment. Before the strategy is implemented,Cole resigns from Best's employ and opens a business to compete with Best. In Best's suit against Cole,to determine whether Cole may compete with Best,what is the most important factor the court should consider?

Accepted Answer

The answer of Best Products,Inc.,hires Cole to develop and implement...

Question 3

Frugal Insurance Company sells a policy to Grover Company,in?suring the life of one of Grover's key executives. When the executive dies,Frugal re?fuses to pay,noting that it was not licensed to sell insurance in Grover's state and arguing that thus,its policy cannot be enforced. Grover can recover

Accepted Answer

The answer of Frugal Insurance Company sells a policy to...

Question 4

In State X,persons must be at least eighteen years old before they can purchase alcoholic beverages.The state also has passed a law requiring that persons who prepare and serve liquor in the form of drinks in com?mercial establishments be licensed.The only requirement for obtaining a yearly license is that the person be at least eighteen years old.Moffitt,aged thirty-five,is hired as a bartender for Lone Star Restaurant. Bekins,an alumnus of State X University,brings twenty of his friends to the restaurant to celebrate State X U's football victory.Bekins or?ders four rounds of drinks,and the bar bill exceeds $200.When Bekins learns that Moffitt has failed to renew his bartender's license,Bekins re?fuses to pay,claiming the contract is unenforceable.Is Bekins correct? Explain.

Accepted Answer

The answer of In State X,persons must be at least...

Question 5

Rolf is an emergency medical technician. Medical personnel such as Rolf are pro?hibited by state statute from working more than a certain num?ber of consecutive hours. One month,Rolf works more than the legal limit. Rolf

Accepted Answer

Rolf can recover for the extra hours of service as violating the legal limit is the employer's responsibility and Rolf is entitled to compensation for the extra hours worked. However, the fact that Rolf worked beyond legal limits without notifying his employer could be grounds for disciplinary action, but resignation is not a required outcome.

Question 6

A contract between Lou and Mike requires a transfer of stolen goods for counterfeit currency.This contract is

Accepted Answer

The contract is void because it involves illegal activities (transfer of stolen goods and counterfeit currency). Contracts that violate the law are generally not enforceable.

Question 7

Derrick is forced,under duress,to enter into an illegal bargain.Derrick

Accepted Answer

The answer of Derrick is forced,under duress,to enter into an...

Question 8

Oscar owns Payroll Company,a bookkeeping service losing market share to Quik Bookwork,Inc.Oscar pays Remy $5,000 to steal a list of Quik's clients,to whom Oscar will aggressively market Payroll's services.This deal is

Accepted Answer

This deal is illegal and against the law, as it involves theft of confidential information. Therefore, it is void and unenforceable.

Question 9

Through fraudulent means,Finlay induces Ethel to sign a contract to in?vest with him the profits from her business. When Ethel learns the truth,she may

Accepted Answer

Ethel has the option to either enforce the contract or recover the amount she invested with Finlay. This is because the contract was induced through fraudulent means, which makes it voidable at her option. Therefore, she can choose to either enforce it or seek restitution.

Question 10

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000.Cross-Country delivers the crates,but Baldwin does not pay.Cross-Country learns that the crates contained stolen goods.Cross-Country can

Accepted Answer

Cross-Country fulfilled their obligation to deliver the crates and the fact that the goods were stolen does not absolve Baldwin of their contractual obligation to pay for the transport services. Cross-Country can seek to recover the $5,000 from Baldwin in court. However, they cannot recover the stolen goods as they are considered contraband and cannot be lawfully owned or sold.

Question 11

Boz runs an illegal gambling business and pays Colin,a police officer,not to interfere.The payments are discovered.Boz and Colin are sent to prison.With respect to the amount of the payments,Boz can recover

Accepted Answer

Boz cannot recover the payments made to Colin as they were for an illegal activity. Any agreement made in furtherance of an illegal activity is unenforceable, and Boz would not be able to recover any of the payments made.

Question 12

Smitty enters into an illegal bargain with Taylor.Smitty can enforce the con?tract or re?cover its value if he has been induced to enter into the bar?gain as a result of

Accepted Answer

Smitty can only enforce the contract or recover its value if he has been induced to enter into the bargain due to duress (coercion or threat). Since the bargain is illegal, none of the other options (B, C, D) would provide justification for Smitty to enforce or recover the value of the contract.

Quiz 12: The Legality of Agreements