Question 1

Frugal Insurance Company sells a policy to Grover Company,insuring the life of one of Grover's key executives.When the executive dies,Frugal refuses 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 2

Jimenez is an emergency medical technician.Medical personnel such as Jimenez are prohibited by state statute from working more than a certain number of consecutive hours.One month,Jimenez works more than the legal limit.Jimenez can recover for​

Accepted Answer

The answer of Jimenez is an emergency medical technician.Medical personnel...

Question 3

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 its obligations under the contract by delivering the crates to Baldwin. However, since the crates contained stolen goods, Baldwin is not entitled to keep the goods without compensating Cross-Country. Therefore, Cross-Country can seek recovery of the contract price ($5,000) from Baldwin.

Question 4

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

Elinor cannot enforce the deal because it involves an illegal activity (selling drugs) and therefore violates public policy. The court will not enforce a contract that is illegal or against public policy. Additionally, Elinor's participation in the agreement could potentially make her criminally liable as well.

Question 5

Best Products,Inc.,hires Cole to develop and implement an e-commerce strategy for marketing Best's products.Cole signs a contract that includes a clause prohibiting him from competing with Best during and after 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 6

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can​

Accepted Answer

Since Petra is a member of the class of persons protected by the statute, she has the right to enforce the policy or recover the amount of premiums paid, despite the fact that Omni violated the licensing statute. However, she cannot simply do nothing with respect to the policy, nor can she only choose to enforce the policy or only recover the amount of premiums paid.

Question 7

Lou and Mike negotiate a deal to transfer stolen body building equipment for counterfeit currency that Mike will attempt to spend at Now! Discount Mart.This contract is​

Accepted Answer

The contract is void because it involves illegal activities (the transfer of stolen property and the use of counterfeit currency). Contracts that involve illegal activities are not enforceable by law.

Question 8

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 can choose to enforce the contract or recover what she invested with Finlay due to the fraudulent means used to induce her to sign the contract. The law provides remedies in cases of fraudulent inducements, and Ethel is entitled to seek redress.

Question 9

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 commercial establishments be licensed.The only requirement for obtaining a yearly license is that the person be at least eighteen years old.Moffitt,aged thirtyfive,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 orders four rounds of drinks,and the bar bill exceeds $200.When Bekins learns that Moffitt has failed to renew his bartender's license,Bekins refuses 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 10

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

The deal is illegal and against the law as it involves theft and unfair competition. Therefore, it is void and unenforceable.

Question 11

Jack and Jill bet illegally on the outcome of a sporting event.Before the event is held,Jack changes his mind about the wager.Jack can​

Accepted Answer

Jack can withdraw from the bet by giving notice, as long as there was no legal agreement in place. However, it's worth noting that illegal betting is not enforceable by law, so Jill cannot take Jack to court to force him to pay up on the bet.

Question 12

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 was engaged in an illegal activity and paying off a police officer to look the other way. It is against the law to bribe a police officer, and therefore, the payments made were illegal. As a result, Boz cannot claim recovery of the payments since they were made as part of an illegal act.

Quiz 13: The Legality of Agreements

Frugal Insurance Company sells a policy to Grover Company,insuring the life of one of Grover's key executives.When the executive dies,Frugal refuses 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​

Jimenez is an emergency medical technician.Medical personnel such as Jimenez are prohibited by state statute from working more than a certain number of consecutive hours.One month,Jimenez works more than the legal limit.Jimenez can recover for​

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​

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​

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can​

Lou and Mike negotiate a deal to transfer stolen body building equipment for counterfeit currency that Mike will attempt to spend at Now! Discount Mart.This contract is​

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​

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​

Jack and Jill bet illegally on the outcome of a sporting event.Before the event is held,Jack changes his mind about the wager.Jack can​

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​

Frugal Insurance Company sells a policy to Grover Company,insuring the life of one of Grover's key executives.When the executive dies,Frugal refuses 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

Jimenez is an emergency medical technician.Medical personnel such as Jimenez are prohibited by state statute from working more than a certain number of consecutive hours.One month,Jimenez works more than the legal limit.Jimenez can recover for

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

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

Omni Insurance Company violates a state licensing statute when selling an insurance policy to Petra,in whose state Omni is not licensed to sell insurance.As a member of the class of persons protected by the statute,Petra can

Lou and Mike negotiate a deal to transfer stolen body building equipment for counterfeit currency that Mike will attempt to spend at Now! Discount Mart.This contract is

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

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

Jack and Jill bet illegally on the outcome of a sporting event.Before the event is held,Jack changes his mind about the wager.Jack can

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