Question 1

Jon agrees to sell his K9 Sports Equipment store to Lacy.As part of the sale,Jon promises never to open a similar,competing store anywhere.Jon's promise is most likely

Accepted Answer

Jon's promise not to open a similar, competing store anywhere is likely to be invalid because it contains unreasonable terms of area and time. This type of promise is commonly known as a non-compete clause, and courts generally view it with suspicion because it restricts a person's ability to work in their chosen field. Non-compete clauses are only enforceable if they are reasonable in scope, duration, and geographic area. Jon's promise never to open a similar store anywhere is likely too broad and could be seen as an unreasonable restriction on his ability to work.

Question 2

Jock and Kim decide to wager in violation of a state statute on the outcome of a football game.They each deposit money with Iverson,who agrees to pay the winner of the bet.Before the game begins,Kim tells Iverson that she changed her mind about the bet.Kim can recover

Accepted Answer

Kim can only recover the amount of her bet since she informed Iverson before the game began that she had changed her mind. The state statute prohibiting the wager makes the bet illegal and unenforceable, so neither party can legally collect any winnings or losses from the bet. However, since Kim informed Iverson before the game began, she can recover the amount of her bet since it was not yet in effect.

Question 3

Chris promises Dina $40,000 if she graduates from Eagle College.Dina enrolls in Eagle,attends full-time for four years,and graduates.When Dina asks Chris for $40,000,Chris says,"I don't remember promising you $40,000.But if there was a promise,it's not enforceable,because we didn't bargain for it.And even if there was a promise that would otherwise be enforceable,I revoke it now." Can Dina enforce Chris's "promise"? Why or why not?

Accepted Answer

The answer of Chris promises Dina $40,000 if she graduates...

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 commercial 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 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 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

A contract between Donald and Chloe to lease commercial property contains an exculpatory clause.This clause is

Accepted Answer

Exculpatory clauses are generally unenforceable as they attempt to release a party from liability for their own negligence or wrongdoing. They are viewed as against public policy because they discourage parties from taking responsibility for their actions and may leave the injured party without recourse.

Question 6

Neil represents himself as a contractor in Ohio,but he is not licensed in that state.A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is

Accepted Answer

In Ohio, a contractor must be licensed to perform construction work. Neil being unlicensed makes the contract between Pam and Neil void and unenforceable. Pam cannot legally enter into a contract with someone who is not licensed to do the work.

Question 7

Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum.First State has

Accepted Answer

First State Bank has violated the usury laws by charging an interest rate that exceeds the state's maximum. Usury laws are set to prevent lenders from charging excessive interest rates, particularly to those who are often in a vulnerable financial situation.

Question 8

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

Accepted Answer

This deal is illegal and against public policy. It involves theft of confidential business information and is thus void.

Question 9

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

Any payments made in connection with illegal activities are not enforceable by law. As such, Boz cannot recover any of the payments made to Colin because they were made to encourage him not to perform his lawful duty as a police officer.

Question 10

U-Can-Own-It Corporation sells appliances to less educated consumers,including Vi,on installment plans.U-Can-Own-It files a suit against Vi when she stops making payments.Vi claims that the deal is unconscionable.The court will most likely consider

Accepted Answer

The court will most likely consider the parties' relative bargaining power when determining whether the deal is unconscionable. As a less educated consumer, Vi may have had less bargaining power compared to U-Can-Own-It Corporation, which could have taken advantage of her lack of knowledge about the terms of the installment plan.

Question 11

Through fraudulent means,Fred induces Gail to sign a contract to build resort cabins on land that Fred does not own.Gail performs,but Fred does not pay.When Gail learns the truth,she may

Accepted Answer

Fred induced Gail to sign the contract through fraudulent means, which means that the contract is voidable. Gail can recover for the performance or its value because she performed in good faith without knowing the truth about the land ownership. Fred is liable to pay for Gail's performance even though he does not own the land.

Question 12

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 Trucking Company can recover the $5,000 from Baldwin because the contract was valid, and they fulfilled their end of the bargain by delivering the crates. The fact that the goods were stolen is not relevant to the contract, and Baldwin is still obligated to pay for the delivery services. However, recovering the stolen goods is not their responsibility as it is not part of their contract with Baldwin.

Quiz 11: Consideration, capacity, and Legality