business law chapter 10 review:. case for legal thinking page 187 read case for legal thinking on...

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.

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.*

Voluntary transfer of property without consideration

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*

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.


• Without the Statue of Frauds*

Contracts not required to be in writing.



Contract to do a friend’s income taxes for the next calendar year.



Contract to do a friend’s income taxes for the next calendar year.

• Within the Statute of Frauds*


Contract to pump crude oil from under a farmer’s land.



Contracts required to be in writing.



A partnership to agree to sell real estate but without a time limit on how

long the partnership will last..



A promise to a creditor to pay your brother’s debts if he cannot.



A promise to a debtor to pay his auto loans if he cannot.



Contracts to buy and sell goods for a price of less than $500.



business law chapter 10 review:. case for legal thinking page 187 read case for legal thinking on...

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