Understanding Business and Personal Law

Chapter 9: Legality

Legality


1.	Price fixing
		A)	encourages competition and raises prices.
		B)	encourages competition and lowers prices.
		C)	discourages competition and raises prices.
		D)	discourages competition and lowers prices.


2.	A contract is said to be divisible if
		A)	certain promises and actions in the contract can be performed by themselves.
		B)	it does not violate any statutory laws.
		C)	all six elements that make up a valid contract are included.
		D)	it contains at least three isolated promises which can be performed independently.


3.	If an activity harms the health, safety, welfare, or morals of the public, that activity violates public policy.
		A)	TRUE
		B)	FALSE


4.	Licensing laws are designed to provide a way for business and industry to collect additional fees.
		A)	TRUE
		B)	FALSE


5.	A restraint of trade is a limitation on the reasonable time for performance of the contract.
		A)	TRUE
		B)	FALSE


6.	A restrictive covenant is a(n)
		A)	example of price fixing.
		B)	promise not to compete.
		C)	agreement that is generally not upheld in court.
		D)	efficient way to determine prices.


7.	Any contract that tries to influence your representatives in Congress to use their position for private gain is unenforceable.
		A)	TRUE
		B)	FALSE


8.	The ability to regulate the health, safety, welfare, and morals of the public is a policy that belongs to the
		A)	public corporations.
		B)	UCC.
		C)	government.
		D)	individual.


9.	In pari delicto means that one party knows that a contract is illegal, while the other party thinks it is legal.
		A)	TRUE
		B)	FALSE


10.	Charging more than the maximum legal interest rate is
		A)	legal tender.
		B)	legal only when it is stated in writing.
		C)	conspiracy.
		D)	usury.