Business Law Chapter 10 Review:

Case for Legal Thinking page 187 Read case for Legal Thinking on page 187 and answer the questions below. – Would the outcome be different if the Ransbergs’ had know Haase was not an architect? – Are Haase’s failure to meet the terms of the contract relevant to this case?

Chapter Vocabulary See if you can identify the vocabulary term by its definition.

Agreement that the courts will enforce*

Contract

To refrain from informing on or prosecuting an alleged crime in exchange for money or other valuable consideration.*

Compounding a crime.

Contract that has been fully performed.*

Executed contract.

Composed of prize, chance, and consideration.*

Lottery

When competing firms agree on the same price to be charged for a product or service.*

Price Fixing

A bet on the outcome of an event.

Wager

License required of professionals certifying they can perform adequately.*

Competency.

Created by a court action to prevent unjust enrichment. (Kind of like a contract with a part missing)

Quasi-contract.

“Take it or leave it contracts”

Contracts of adhesion

License granted only to earn revenue for the licensing body.*

Revenue license.

Charging interest on a loan beyond the legally permitted maximum.*

Usury

Voluntary transfer of property without consideration

Gift

Goods and services reasonable to maintain ones lifestyle

Necessaries

Approval of a voidable contract

Ratification

Use of improper act or threat to obtain an unfair advantage*

Duress

Person who makes a promise*

Promisor

Person who has not yet reached the age of majority*

Minor

Severing of the parent child relationship*

Emancipation

Law setting the time limit to bring about a lawsuit.*

Statute of limitations

A contract from which an injured party can withdraw.

Voidable.

Legal proceedings discharging debt.

Bankruptcy

A response necessary to transform an offer to a contract.*

Acceptance

Offeror’s act that invalidates an offer.

Revocation*

Consent not clouded by fraud, duress, undue influence or mistake.

Genuine Assent

A person who owes a duty under a contract.

Obligor

Multiple choice See if you can identify the correct answer to the multiple choice questions.

Which of the following would constitute an agreement that obstructs legal procedures? Paying expert witnesses in a trial. Promising to inform on an alleged crime without receiving money or any other form of compensation. Bribing jurors. Paying the legal rate of interest on a loan.

Which of the following would constitute an agreement that obstructs legal procedures? Paying expert witnesses in a trial. Promising to inform on an alleged crime without receiving money or any other form of compensation. Bribing jurors.* Paying the legal rate of interest on a loan.

An integration clause states that both parties ________ the terms in the written contract constitute the entire agreement. Disagree that Agree that Argue about whether Don’t care whether All of the above.

An integration clause states that both parties ________ the terms in the written contract constitute the entire agreement. Disagree that Agree that* Argue about whether Don’t care whether All of the above.

What are the elements of a lottery? Prize, skill, and consideration. Prize, chance, and consideration. Prize, chance, and lack of capacity. Prize, skill, and chance.

What are the elements of a lottery? Prize, skill, and consideration. Prize, chance, and consideration.* Prize, chance, and lack of capacity. Prize, skill, and chance.

Which agreement unreasonably restrains trade and injures competition by having competitors divide markets among themselves. Allocation of markets. Bid rigging. Resale price maintenance. Price Fixing.

Which agreement unreasonably restrains trade and injures competition by having competitors divide markets among themselves. Allocation of markets.* Bid rigging. Resale price maintenance. Price Fixing.

With a(n) ________ contract, separate consideration is given for the legal and illegal parts. Illegal Divisible Indivisible Unconscionable All of the Above

With a(n) ________ contract, separate consideration is given for the legal and illegal parts. Illegal Divisible* Indivisible Unconscionable All of the Above

Which of the following would be required to hold a competency license? A farmer. A shoemaker. A dentist. A garbage collector.

Which of the following would be required to hold a competency license? A farmer. A shoemaker. A dentist.* A garbage collector.

When one company agrees that one bidder will have the lowest bid, this is called An allocation of markets. A resale maintenance. A monopoly. Bid Rigging None of these.

When one company agrees that one bidder will have the lowest bid, this is called An allocation of markets. A resale maintenance. A monopoly. Bid Rigging* None of these.

Lending money at higher rates than the state’s maximum allowed interest rate is known as. Utilitarianism Usury Loan sharking Time-price differential.

Lending money at higher rates than the state’s maximum allowed interest rate is known as. Utilitarianism Usury* Loan sharking Time-price differential.

If an employee agrees not to compete with his or her employer after the employment terminates, this is called: A monopoly. A prohibited act. Blue sky laws. A Non-compete contract. None of the above.

If an employee agrees not to compete with his or her employer after the employment terminates, this is called: A monopoly. A prohibited act. Blue sky laws. A Non-compete contract.* None of the above.

Parole statements can be admitted to prove which of the following? Fraud Illegality A conflicting agreement existed before signing Both A and B. None of the above.

Parole statements can be admitted to prove which of the following? Fraud Illegality A conflicting agreement existed before signing Both A and B.* None of the above.

Statute of Frauds Read the following cases and decide if the contract must be within or without the Statute of Frauds.

Specially manufactured non-resalable goods, with a value of $10,000. Within the Statute of Frauds Without the Statue of Frauds

Specially manufactured non-resalable goods, with a value of $10,000. Within the Statute of Frauds Without the Statue of Frauds*

Contracts not required to be in writing. Within the Statute of Frauds Without the Statue of Frauds

Contracts not required to be in writing. Within the Statute of Frauds Without the Statue of Frauds*

Contract to do a friend’s income taxes for the next calendar year. Within the Statute of Frauds Without the Statue of Frauds

Contract to do a friend’s income taxes for the next calendar year. Within the Statute of Frauds* Without the Statue of Frauds

Contract to pump crude oil from under a farmer’s land. Within the Statute of Frauds Without the Statue of Frauds

Contract to pump crude oil from under a farmer’s land. Within the Statute of Frauds* Without the Statue of Frauds

Contracts required to be in writing. Within the Statute of Frauds Without the Statue of Frauds

Contracts required to be in writing. Within the Statute of Frauds* Without the Statue of Frauds

A partnership to agree to sell real estate but without a time limit on how long the partnership will last.. Within the Statute of Frauds Without the Statue of Frauds

A partnership to agree to sell real estate but without a time limit on how long the partnership will last.. Within the Statute of Frauds Without the Statue of Frauds*

A promise to a creditor to pay your brother’s debts if he cannot. Within the Statute of Frauds Without the Statue of Frauds

A promise to a creditor to pay your brother’s debts if he cannot. Within the Statute of Frauds* Without the Statue of Frauds

A promise to a debtor to pay his auto loans if he cannot. Within the Statute of Frauds Without the Statue of Frauds

A promise to a debtor to pay his auto loans if he cannot. Within the Statute of Frauds* Without the Statue of Frauds

Contracts to buy and sell goods for a price of less than $500. Within the Statute of Frauds Without the Statue of Frauds*

Contracts to buy and sell goods for a price of less than $500. Within the Statute of Frauds Without the Statue of Frauds*