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r  LEGALITY

Chapter Outcomes:
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r  LEGALITY

Chapter Outcomes (continued):


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Agreements to Engage in
Unlawful Activity
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LawLINKS
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Topic Quiz

Answer the following true/false questions:

| The illegal practice of charging


more than the amount of
interest allowed by law is
called usury TRUE
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Topic Quiz
Answer the following true/false questions:

 All states have made all wagering


agreements illegal

FALSE

Exceptions are horse racing, lotteries,


bingo, and casinos in some states!
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Topic Quiz
Answer the following true/false questions:

 If a license is required to raise revenue


the lack of a license will always void a
contract
FALSE

Not necessarily
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Agreements Contrary to Public


Policy
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LawLINKS
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A Question of Ethics
 
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Topic Quiz
Answer the following true/false questions:

| Exculpatory clauses are generally


favored by the law

FALSE

No, because they generally permit less


than acceptable standards
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Topic Quiz

Answer the following true/false questions:

 A restraint of trade is a
limitation on the full exercise
of doing business with others
TRUE
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Topic Quiz
Answer the following true/false questions:

 Restrictive covenants are never upheld


by the courts

FALSE

They will be upheld if reasonable in


time and geographic area
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Consequences of Illegality

  
 

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Topic Quiz
Answer the following true/false questions:

| A contract must violate criminal law to


be invalid

FALSE

Agreements that do not violate criminal


law may also be invalid
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Topic Quiz
Answer the following true/false questions:

 If a contract is partly legal and partly


illegal, the entire contract will always be
struck down by the courts

FALSE

Not if it can be separated


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Topic Quiz
Answer the following true/false questions:

 When the parties to an illegal


contract are not   
,
relief will often be granted if
sought by the more innocent
party
TRUE
SUMMARY
|| | An agreement might have offer, acceptance,
mutual assent, competent parties, and
consideration and still be invalid if the
objective of the agreement is to do something
that is illegal

Agreements to commit crimes or torts are


illegal and void
Some agreements are made illegal by statute
even though the activities are neither crimes
nor torts
SUMMARY
(continued)

||  Public policy is a general legal


principle stating that no one should
be allowed to do anything that hurts
the public at large

||  Contracts that involve illegal


agreements are invalid
Chapter ||
Key Terms
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Chapter ||

Investigating on the Internet


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