Question 1

In Buckeye Check Cashing,Inc. ,v.Cardegna et al,the case was heard in front of the U.S.Supreme Court to determine whether the court or the arbitrator should decide the issues of a case when illegality in relation to a contract is claimed.What was the ruling?

Accepted Answer

A)  The court should address charges of illegality involving either an arbitration provision or a contract as a whole.
B)  An arbitrator should address charges of illegality involving either an arbitration provision or a contract as a whole.
C)  When an arbitration provision in a contract is not specifically challenged,a court should address a charge of illegality to a contract as a whole.an arbitration provision in a contract is not specifically challenged,an arbitrator should address a charge of illegality to a contract as a whole.
D)  When an arbitration provision in a contract is not specifically challenged,an arbitrator should address a charge of illegality to a contract as a whole.
E)  Whether a court or an arbitrator should address charges of illegality involving either an arbitration provision or a contract as a whole depends upon the first to file rule.F) D) and E)
G) C) and D)

Question 2

[Motorcycle crash] Cassandra,who would be turning 18 in two weeks,wanted to purchase a motorcycle at Hal's Cycles.Hal explained she could pay monthly installments through a financing agreement,and that he needed an ID to verify she was at least 18 years old.Cassandra,who strongly resembled her older sister Alana,handed Alana's drivers' license to Hal,but Hal did not notice the license had the wrong name.The next day,when cruising in her new motorcycle,Cassandra crashed into Jonah,who was injured in the collision.The next month,Cassandra received a bill for the first installment of the motorcycle.Her parents also received a notice that they were being sued by Jonah because of Cassandra's collision.Realizing her parents would be upset that she purchased a motorcycle,Cassandra went to Hal to return the broken motorcycle and tell him she was a minor and she's not responsible for any payments under the financing agreement.
-Are Cassandra's parents liable for Jonah's injuries from the motorcycle crash?

Accepted Answer

A)  Yes,because all states recognize parental liability,regardless of proper supervision.
B)  Yes,because parents are usually liable for a minor's personal torts.
C)  No,but only because they were not aware of any misappropriation.
D)  No,even if there is evidence that her parents failed to properly supervise Cassandra,parents cannot be held liable for a minor's personal torts.
E)  No,because in most states,minors,not their parents,are liable for a minor's personal torts.F) C) and D)
G) B) and C)

Question 3

How many states engage in at least some regulation of gambling?

Accepted Answer

A)  50
B)  35
C)  10
D)  40
E)  47F) A) and C)
G) B) and C)

Question 4

A[n] contract is one requiring complete performance by both parties,even if it appears as if the contract contains multiple parts.

Accepted Answer

A)  Justifiable
B)  Independent
C)  Indivisible
D)  Adhesion
E)  DivisibleF) A) and B)
G) B) and E)

Question 5

When someone has some sort of mental or physical defect that prevents him or her from being able to enter into a legally binding contract,what term is used?

Accepted Answer

A)  Capacity
B)  Immajority
C)  Chronic illness
D)  Terminal illness
E)  IncapacityF) All of the above
G) B) and C)

Question 6

Tevis's claim that he had no obligation to defame Flora is supported by which of the following statements?

Accepted Answer

A)  Tevis is correct in that he could not be legally obligated to commit defamation.
B)  Tevis is correct only if it can be proven that the defamation would cause Flora actual injury.
C)  Tevis is correct only if it can be proven that the defamation is undeserved.
D)  Tevis is correct only if it can be proven that the defamation would cause Flora money damages.
E)  Tevis is correct only if it can be proven that he had a prior relationship with Flora.F) C) and E)
G) A) and D)

Question 7

What is usury? What are the two legal exceptions discussed in the text whereby usury statutes will not be applied?

Accepted Answer

Usury occurs when a party gives a loan a...

Question 8

According to Exhibit 16-4 regarding contracts that violate state or federal statutes,which of the following types of contracts would violate a statute in all states?

Accepted Answer

A)  An agreement to publish a defamatory article about one's boss.
B)  An agreement for an unlicensed attorney to perform legal work.
C)  An agreement regarding gambling.
D)  An agreement regarding a usurious loan.
E)  An employment contract that requires employees to work on the Sabbath.F) C) and E)
G) B) and D)

Question 9

According to the majority rule,would Cassandra have the right to disaffirm the financing agreement?

Accepted Answer

A)  No,under the majority rule,if a minor misrepresents his or her age,the right to disaffirm a contract transfers to the other party.
B)  Yes,but only because Hal did not notice the name on the ID was not Cassandra's name.
C)  Yes,under the majority rule,her misrepresentation of age does not affect her right to disaffirm the contract.
D)  No,because under the majority rule,a minor's misrepresentation of age voids the minor's right to disaffirm the contract.
E)  No,under the majority rule,a minor's misrepresentation of age is a misdemeanor.F) C) and D)
G) A) and C)

Question 10

_______ refers to when both parties are equally responsible for an illegal agreement.

Accepted Answer

A)  In pari delicto
B)  A res ipsa contract
C)  An adhesion contract
D)  Procedurally unconscionable
E)  A stare decisis contractF) All of the above
G) A) and D)

Exam 16: Capacity and Legality

_______ refers to when both parties are equally responsible for an illegal agreement.

Correct Answer
verified

A[n] contract is one requiring complete performance by both parties,even if it appears as if the contract contains multiple parts.

Correct Answer
verified

What is usury? What are the two legal exceptions discussed in the text whereby usury statutes will not be applied?

Correct Answer
verified
Usury occurs when a party gives a loan a...
View Answer

According to the majority rule,would Cassandra have the right to disaffirm the financing agreement?

Correct Answer
verified

When someone has some sort of mental or physical defect that prevents him or her from being able to enter into a legally binding contract,what term is used?

Correct Answer
verified

Correct Answer
verified

In Buckeye Check Cashing,Inc. ,v.Cardegna et al,the case was heard in front of the U.S.Supreme Court to determine whether the court or the arbitrator should decide the issues of a case when illegality in relation to a contract is claimed.What was the ruling?

Correct Answer
verified

Tevis's claim that he had no obligation to defame Flora is supported by which of the following statements?

Correct Answer
verified

How many states engage in at least some regulation of gambling?

Correct Answer
verified

According to Exhibit 16-4 regarding contracts that violate state or federal statutes,which of the following types of contracts would violate a statute in all states?

Correct Answer
verified

Exam 16: Capacity and Legality

_______ refers to when both parties are equally responsible for an illegal agreement.

Correct AnswerverifiedShow Answer

A[n] contract is one requiring complete performance by both parties,even if it appears as if the contract contains multiple parts.

Correct AnswerverifiedShow Answer

What is usury? What are the two legal exceptions discussed in the text whereby usury statutes will not be applied?

Correct AnswerverifiedUsury occurs when a party gives a loan a...View AnswerShow Answer

According to the majority rule,would Cassandra have the right to disaffirm the financing agreement?

Correct AnswerverifiedShow Answer

When someone has some sort of mental or physical defect that prevents him or her from being able to enter into a legally binding contract,what term is used?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In Buckeye Check Cashing,Inc. ,v.Cardegna et al,the case was heard in front of the U.S.Supreme Court to determine whether the court or the arbitrator should decide the issues of a case when illegality in relation to a contract is claimed.What was the ruling?

Correct AnswerverifiedShow Answer

Tevis's claim that he had no obligation to defame Flora is supported by which of the following statements?

Correct AnswerverifiedShow Answer

How many states engage in at least some regulation of gambling?

Correct AnswerverifiedShow Answer

According to Exhibit 16-4 regarding contracts that violate state or federal statutes,which of the following types of contracts would violate a statute in all states?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Usury occurs when a party gives a loan a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified