Understanding Business and Personal Law
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Chapter 9: Legality
      
  1.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  
      
  2.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.  
      
  3.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.  
      
  4.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.  
      
  5.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.  
      
  6.A restraint of trade is a limitation on the reasonable time for performance of the contract.  
  a.   TRUE  
  b.   FALSE  
      
  7.If an activity harms the health, safety, welfare, or morals of the public, that activity violates public policy.  
  a.   TRUE  
  b.   FALSE  
      
  8.Any contract that tries to influence your representatives in Congress to use their position for private gain is unenforceable.  
  a.   TRUE  
  b.   FALSE  
      
  9.Licensing laws are designed to provide a way for business and industry to collect additional fees.  
  a.   TRUE  
  b.   FALSE  
      
  10.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.  

 
 
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