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Exam 11: Capacity and Legality

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Question 21

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Which of the following refer(s) to laws that limit the types of business activities in which parties may legally engage on Sundays?

A) Sabbath laws only
B) Blue laws only
C) Red laws only
D) Sabbath and blue laws,but not red laws
E) Sabbath laws,blue laws,and red laws

F) A) and B)
G) B) and E)

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Question 22

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Beauty Shop Woes.When Janice went to work as a hair stylist in Rick's beauty shop,she entered into an agreement with Rick whereby if she left,she would not work for another beauty shop within 50 miles for 2 years.Rick trained Janice in several new techniques.After nine months,Janice was offered a great job down the street at a new beauty shop,quit Rick,and had a number of customers follow her down the street to her new job.Rick claimed that she had signed a contract and had no right to go to work at the new shop.Janice disagreed and told Rick that no judge in the country would enforce such an agreement.Janice told Rick that she was more worried about a customer,Treena,who was threatening to sue her because her hair turned green after Janice worked on it.Janice agreed that Treena's hair was damaged.Janice pointed out,however,that she told Treena that odd results could result from a dye attempt,and she required that Treena sign a contract releasing Janice from all liability before she did anything with Treena's hair.Treena,however,sued anyway.What type of clause did Janice have Treena sign to the effect that she would not hold Janice liable for any bad results?

A) Adhesion
B) Exculpatory
C) Procedural
D) Substantive
E) Malfeasance

F) A) and E)
G) A) and D)

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Question 23

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Which of the following was the result in Eric Lucier and Karen A.Haley v.Angela and James Williams,Cambridge Associates,LTD.,and Al Vasys,the case in the textbook involving a home inspection that allegedly failed to reveal a bad roof,in which some defendants moved for partial summary judgment seeking enforcement of a limitation of liability clause contained in the contract at issue?

Maurice wishes to purchase a small local restaurant named "Tasty Burger" from Todd,who tells Maurice that although he loves the teenagers who have frequented his establishment,he is tired of flipping burgers and wants to spend more time fishing on the lake.Maurice has Todd sign a covenant not to compete,prohibiting Todd from opening a restaurant within 25 miles of Tasty Burger for 5 years.Assuming that the covenant was drafted properly,is it likely to be enforced? Discuss arguments for and against covenants not to compete in the sale of a business.

Useless Friend.Charles,who is very gullible,is friends with Bobby.Bobby,who cannot be trusted,decides to try to bind Charles to a contract in Bobby's favor.Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80.The contract incorporated by reference terms on the back.The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby,do his laundry,and clean his apartment.Bobby is also very angry with his former girlfriend,Tessa,and decides to start rumors that would constitute the tort of defamation,such as that she has a vile disease,cheated on tests,and stole from friends.Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors.One evening,however,Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby.Bobby had him sign a contract agreeing to defame Tessa for $50.When he sobers up,Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa,who also happens to be Charles's new girlfriend.He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous and that he has no intentions of going through with any of it.Which of the following would be a possible defense to Bobby's contract involving chores based upon the small print on the back of the contract?

A statement releasing one of the parties to an agreement from all liability,regardless of who is at fault or what the injury suffered is,would be referred to as a(n) ________.

Irresponsible Teen.At age 17,in a state in which the age of majority is 18,Sally purchased a prom dress from Formal Stuff.She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund.The dress had clearly been worn and had a purple stain that Sally claimed was from grape juice.Additionally,a few days before she turned 18,Sally purchased a used car from Dings and Dents used cars.She had a deal whereby she paid $100 per month on the car.She drove the car and made payments for fourteen months after she turned 18.Then,she returned the car to Dings and Dents and told them that she wanted all her money back.Dings and Dents claimed the car was a necessity.Sally and her parents claimed that the parents were ready and willing to provide a car to Sally and that she only purchased the car from Dings and Dents because she liked that particular style and color.When purchases of the dress and car were made,the sellers knew that Sally was under the age of 18.In the dispute between Sally and the owner of Dings and Dents,which of the following is true regarding the defense of Sally and her parents that the car was a necessary?

Which of the following is an element of a legally binding contract?

As a general rule,most states will not allow a minor to disaffirm contracts for which of the following?

According to the traditional rule,if Sam,a minor,purchased a television from an electronics shop with a $100 down payment on a one-year credit contract and accidentally damaged it a week after he took it home,he could return the television to the store in its damaged condition and tell the owner he was rescinding the contract.Sam would then be entitled to the return of his $100 down payment and would owe no further obligation to the store.

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor?

Which of the following is a correct statement regarding the remedy available for an unenforceable agreement?

Polly decides to go snow skiing at a ski facility owned by Bill.Bill requires that all the skiers sign an agreement containing a release providing that even if the ski facility is negligent and that negligence results in injury,the skier agrees not to hold the ski facility liable.While on one of the steepest slopes Polly fell,breaking her leg.She complains that she was not adequately warned of conditions on the slope and sues Bill.Polly's position is that the release is not enforceable.What is the release Polly signed called,and what is Bill's best argument?

The term ________ refers to the fact that an agreement is so unfair that it is void of conscience.

Which of the following involves overly harsh or lopsided substance in an agreement?

Useless Friend.Charles,who is very gullible,is friends with Bobby.Bobby,who cannot be trusted,decides to try to bind Charles to a contract in Bobby's favor.Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80.The contract incorporated by reference terms on the back.The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby,do his laundry,and clean his apartment.Bobby is also very angry with his former girlfriend,Tessa,and decides to start rumors,that would constitute the tort of defamation,such as that she has a vile disease,cheated on tests,and stole from friends.Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors.One evening,however,Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby.Bobby had him sign a contract agreeing to defame Tessa for $50.When he sobers up,Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa,who also happens to be Charles's new girlfriend.He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous and that he has no intentions of going through with any of it.Which of the following is true under the Restatement of Contracts,Section 16,regarding Charles's claim that he should be able to avoid the contract involving Tessa because he was intoxicated?

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

In most cases,when a minor marries,she or he is considered ________.

When must a disaffirmance of a contract based on minority occur?

Describe the test most states follow regarding the capacity of intoxicated persons to enter into contracts.